SUHUMSENI

ORHI
GHTECHNI
CALSCHOOL
ENDOFSECONDSEMESTEREXAMI
NATI
ON
SHS2
Cos
tAc
count
ing
INSTRUCTION:Thi
spaperi
sa2hour :
20Mi nute
spape
rma deupofPape
r1a ndPaper2.
Pape
r1isa
n
obje
cti
vete
s tpa
perof1hourdur
ati
on.Paper2hast
wos e
ctions
:AandB.Youaregiv
en1hour20
minute
shourstoatt
empt4quest
ionsinPaper2.
PAPER1(
OBJ
ECTI
VES)
1.Whi
choft
hef
oll
owi
ngha
sas
cer
tai
nme
ntofc
osta
sit
sobj
ect
ive
?
A.Budge
tar
ycont
rol
B.Cos
tac
count
ing
C.Fi
nanc
ial
acc
ount
ing
D.Ma
nage
menta
ccount
ing

2.Whi
choft
hef
oll
owi
ngi
str
ueofc
osta
ccount
ingi
nfor
mat
ion?
A.I
tisdi
rec
teda
tex
ter
nal
use
rs
B.I
tsi
nfor
mat
ioni
sav
ail
abl
eaf
tera
naudi
tisc
ompl
ete
d
C.I
tpr
ovi
desi
nfor
mat
ionf
ori
nte
rna
lus
e
D.I
tre
por
tsona
ggr
ega
teda
taont
hec
ompa
nya
sawhol
e

3.Thes
ala
ryofapr
oduc
tionma
nage
risc
las
sif
ieda
s

A.Di
str
ibut
ionov
erhe
ad B.
Fac
tor
yov
erhe
ad C.
Sel
l
ingov
erhe
ad DVa
ria
bleov
erhe
ad

4.Whi
choft
hef
oll
owi
ngde
cre
ase
swhe
nout
puti
sinc
rea
sed?
A.Fi
xedc
ostpe
runi
tB.
Tot
alf
ixe
dcos
t C.
Var
iabl
ecos
tpe
runi
tD.
Tot
alv
ari
abl
ecos
t

5.Thedoc
ume
ntus
edbyt
hepur
cha
singde
par
tme
ntt
opl
acea
nor
derwi
thas
uppl
i
eri
s
A.Agoodsr
ece
ive
dnot
es B.
Apur
cha
seor
derC.Apur
cha
ser
equi
si
ti
on D.Ani
nvoi
ce

1
6.Af
ixe
dre
gul
arpa
yme
ntt
oane
mpl
oye
e,e
xpr
ess
eda
sana
nnua
lamounti
s
A.Abonus
B.Anov
ert
imepr
emi
um
C.As
ala
ry
D.Awa
ge
7 Adocumentc ompl
ete
dbyaper
sonrequi
ri
ngmat
eri
al
stobepurc
hasedbythepurchas
ing
de
partmentisa A. Pur
cha
serequi
si
ti
onnot
e B.Mate
ria
lre
quis
iti
onnot
e C. Purc
haseor
der
D.Goodsrec
e iv
ednot
e

8 Whi
choft
hef
oll
owi
ngi
snotaba
sisf
orc
omput
ingov
erhe
ada
bsor
pti
onr
ate
?
A.Di
rec
tla
bourc
ostpe
rce
nta
ger
ate
B.Numbe
rofe
mpl
oye
es
C.Pr
imec
ostc
ostpe
rce
nta
ger
ate
D.Ma
chi
nehour
s

9 Br
eak
-ev
enpoi
nti
sthe
A.Sa
lesl
eve
latwhi
cht
hec
ompa
nyne
ithe
rea
rnsapr
ofi
tnori
ncur
sal
oss
B.Ex
ces
sofe
xpe
cte
dsa
lesov
ert
hel
eve
lofbr
eak
-ev
ens
ale
s
C.Amountt
hatt
hes
aleofoneuni
tcont
ri
but
est
owa
rdsr
ecov
eri
ngf
ixe
dcos
tsa
nde
arni
ngs
pr
ofi
t
D.Cont
ri
but
ionma
rgi
npe
runi
tex
pre
sse
dasape
rce
nta
geoft
hepr
oduc
t’
sse
ll
ingpr
ice
10.
Mar
gina
lcos
tingi
sal
sok
nowna
s
A.Uni
tcos
ting
B.Se
rvi
cec
ost
ing
C.Va
ria
blec
ost
ing
D.Fi
xedc
ost
ing

11.Cos
tswhi
chr
espondt
ocha
nge
swi
tht
heout
puta
re
A.Fi
xedc
ost
s
B.Oppor
tuni
tyc
ots
C.Sunkc
ost
s

2
 D.Va
ria
blec
ost
s

12Whi
choft
hef
oll
owi
ngi
snotac
ompone
ntofpr
imec
ost
?
A.Cos
tofs
pec
ial
des
ign
B.Lubr
ica
tingoi
l
C.Cos
tofr
awma
ter
ial
D.Roy
alt
ypa
id

13Cl
ass
if
ic
ati
ona
ndc
odi
ngofma
ter
ial
sins
tor
ese
nabl
esor
gani
zat
iont
o
A.Ea
sil
yide
nti
fyma
ter
ial
s
B.Pr
eve
ntde
ter
ior
ati
onofma
ter
ial
s
C.Re
duc
ingpur
cha
singc
ost
D.Spe
eduppur
cha
singma
ter
ial
s

Us
ethef
oll
owi
ngi
nfor
mat
iont
oans
werque
sti
on14a
nd15
Ma
ximumus
age 8,
000k
gpe rwe
ek
Mi
ni
mumusage 4,
000k
gpe rwe
ek
Ma
ximuml
eadti
me 5months
Mi
ni
mumlea
dtime 3months
14Wha
tist
her
e-or
derl
eve
l?
A.12,
000k
g
B.20,
000k
g
C.32,
000k
g
D.40,
000k
g

15Wha
tist
henor
mal
cons
umpt
ion?
A.4,
000k
g
B.6,
000k
g
C.8,
000k
g
D.12,
000k
g

3
16Whi
choft
hef
oll
owi
ngi
sas
tat
utor
yde
duc
tiononapa
yrol
l
?
A.I
nsur
anc
epr
emi
um
B.Soc
ial
sec
uri
ty
C.Uni
ondue
s
D.We
lfa
redue
s

17Whe
nac
tua
lov
erhe
adsi
ncur
rede
xce
edsov
erhe
adsa
bsor
bed,
thedi
ff
ere
ncei
s
A.Ov
er-
abs
orbe
dov
erhe
ads
B.Ex
ces
sov
erhe
ads
C.Pr
oduc
tionov
erhe
ads
D.Unde
r-a
bsor
bedov
erhe
ads

18Ov
erhe
adsi
ncur
redt
ose
cur
eor
der
sandde
li
verpr
oduc
tsa
rec
las
sif
ieda
s
A.Admi
ni
str
ati
ve
B.Pr
oduc
tion
C.Re
sea
rcha
ndde
vel
opme
nt
D.Se
ll
inga
nddi
str
ibut
ion

19Whi
choft
hef
oll
owi
ngi
sapr
ede
ter
mine
dcos
t?
A.Pr
oduc
tionc
ost
B.J
obc
ost
C.St
anda
rdc
ost
D.Ma
rgi
nal
cos
t
19.
Thec
orr
ects
eque
nceofma
ter
ial
cont
rol
proc
ess
esi
s
APur
cha
sing–i
ssue
—re
cei
pt—s
tor
age
BPur
cha
sing-r
ece
ipt
--i
ssue
---
stor
age
CPur
cha
sing—r
ece
ipt
—st
ora
ge—i
ssue
DPur
cha
sing-
--s
tor
age
---
rec
eipt
—is
sue

20Di
sca
rde
dma
ter
ial
sinpr
oce
ssi
ngwi
thas
mal
lsa
lesv
aluei
s

4
 ABypr
oduc
t B.
Scr
ap CSpoi
l
age DWa
ste

21.
Inpr
oce
ssc
ost
ing
,thei
nputofonepr
oce
ssi
s
AI
nputoft
hene
xtpr
oce
ss B.
Inputoft
hepr
evi
ouspr
oce
ss
COut
putoft
hene
xtpr
oce
ss Dout
putoft
hepr
evi
ouspr
oce
ss

22Ac
har
act
eri
sti
cofc
ont
rac
tcos
tingi
stha
t,i
tha
sahi
ghpr
opor
ti
onof
A.Di
rec
tcos
t
B.Fi
xeda
ndv
ari
abl
ecos
t
C.I
ndi
rec
tcos
t
D.Pr
imec
ost

23Whi
chme
thodofpr
ici
ngi
ssue
sre
sul
tsi
nhi
ghe
rre
tur
nsi
nti
mesofi
nfl
ati
on
A.FI
FO
B.LI
FO
C.Si
mpl
eav
era
ge
D.St
anda
rdpr
ice

24Cos
tst
hatc
annotbea
ll
oca
tedt
oanyc
ostuni
tsa
re….
.
A Di
rec
tcos
ts BEx
pens
esC.
Ove
rhe
ads DSunkc
ost
s

25Ti
mel
osti
npr
oduc
tiont
hroughi
ssue
sbe
yondt
hec
ont
rol
ofwor
ker
sar
e
ASt
artupt
ime B.Ex
trat
ime C I
dlet
ime D ov
ert
ime
26Pr
ede
ter
mine
dov
erhe
ada
bsor
pti
onr
ate
sar
ecomput
edt
o
A.Al
l
oca
teov
erhe
ads
B.Compl
etec
osts
hee
ts
C.Compl
etepr
oduc
tion
D.Abs
orbov
erhe
ads

27Ac
tiv
iti
eswhi
cha
res
igni
fi
cantde
ter
mina
ntofc
ost
sar
e

5
 A.Cos
tac
count
s Bc
ostc
ent
res C.
cos
tdr
ive
rs D.
Cos
tuni
ts

28Pr
oce
ssc
ost
ingme
thodi
sadopt
edwhe
re
A.Asingl
ety
peofpr
oduc
tispr
oduc
edi
nst
age
s BCus
tome
rs’
orde
rsa
repr
oduc
edi
n
ba
tches
C.
Goodsa
repr
oduc
edt
ocus
tome
rs’
spe
cif
ic
ati
on DMos
toft
hewor
kisdoneont
hes
ite
29.Ani
nce
nti
ves
che
met
hate
ncour
age
swor
ker
stopr
oduc
eex
trauni
tsi
s
A.
Dif
fer
ent
ial
pie
cer
ate B.
Highda
ywor
k C.
Pre
miumbonus D.
Ove
rti
mepr
emi
um
30Thec
har
gingofov
erhe
adst
ocos
tuni
tsi
s
A.Abs
orpt
ion B.
Prof
it C.
Sur
plus D.
Var
ianc
e

31 Thepe
riodi
tta
kesf
oror
der
edgoodst
obede
li
ver
edi
s
A.I
dlet
ime B.
lea
dti
me C.
max
imums
toc
kle
velD.
Reor
derl
eve
l
32.
Capi
tal
isl
ock
edupi
nst
ockwhe
nthe
rei
s
A.Goods
toc
kma
nage
mentB.
Sma
llope
rat
ingc
api
talC.
toomuc
hst
ock D.
Tool
i
ttl
est
ock
33Conv
ers
ionc
osti
spr
oduc
tionc
ostl
ess
A.Di
rec
tma
ter
ial
cos
t B.
Labourc
ost C.
ove
rhe
ads DPr
imec
ost
34.
Cos
twhi
chdoe
snoti
nvol
vec
ashpa
yme
ntbutr
athe
ras
acr
if
ic
ema
dei
s
A.
fut
urec
ostB.
his
tor
ica
lcos
tC.
imput
edc
ost D.
sunkc
ost
35.
I
nwhi
choft
hef
oll
owi
ngi
ndus
tri
eswi
l
lse
rvi
cec
ost
ingbeus
ed?
A.Cons
truc
tion B.
Fur
nit
urema
nuf
act
uri
ng C.
Hos
pit
ali
ty D.
Pet
rol
ref
ine
ry
36Thepa
rtofc
ostofc
ompl
ete
dcont
rac
the
lda
gai
nstpos
sibl
ede
fec
tiv
ewor
kis
A.Appa
rentpr
ofi
t
B.Buf
ferf
unds
C.Sur
plusf
unds
D.Re
tent
ionmone
y

37.Ba
tchc
ost
ingi
sus
edwhe
repr
oduc
tioni
nvol
ves
A.
Dif
fer
entj
obs
pec
if
ic
ati
ons B.
Produc
tiona
tcus
tome
r’spr
emi
ses
CSe
ver
aluni
tsofa
nide
nti
cal
produc
t D.
Twoormor
econt
rac
t

6
 Us
ethef
oll
owi
ngi
nfor
mat
iont
oans
werque
sti
on38-
40
Tot
alc
ostofPr
oduc
tioni
nPr
oce
ss1 Le810,
000
Uni
tsi
ntr
oduc
edi
npr
oce
ss1 180,
000uni
ts
Nor
mal
Los
s 10%
Numbe
rofuni
tst
rans
fer
redi
npr
oce
ss1 170,
000uni
ts
38.Thec
ostofpr
oduc
tionpe
runi
tis
ALe5.
00 B.
Le4.
67 C.
Le4.
63 D.
Le4.
50
39.Nor
mal
los
sforPr
oce
ss1i
s
A. 180,
000uni
ts B.
170,
000uni
ts C.
18,
000uni
ts D.10,
000uni
ts
40.I
npr
oce
ss1,
the
rewa
s
A.Abnor
mal
gai
nof8000uni
ts B.
Abnor
mal
gai
nof10,
000uni
ts
C Abnor
mal
los
sof10,
000uni
ts D.
Abnor
mal
los
sof8000uni
ts

PAPER2
Se
cti
onA
Youa
ret
oat
temptt
wo(
2)que
sti
onsi
nthi
sse
cti
on
1.a
. Wha
tisbr
eake
vena
nal
ysi
s 4ma
rks
b. St
atef
iv
e(5)a
ssumpt
ionsunde
rly
ingbr
eake
vena
nal
ysi
s 6ma
rks
i
. Me
nti
onf
ivel
i
mit
ati
onsofbr
eake
vena
nal
ysi
s 5ma
rks

2.a De
fineAbs
orpt
ionc
ost
ing3ma
rks
b. Out
li
nef
our
(4)a
dva
nta
gesofa
bsor
pti
onc
ost
ing 8ma
rks
c
. St
atet
wodi
ff
ere
nce
sbe
twe
enma
rgi
nal
cos
tinga
nda
bsor
pti
onc
ost
ing 4ma
rks

3.a
. De
finePr
oce
ssc
ost
ing 3ma
rks
b. St
atef
ourc
har
act
eri
sti
csofpr
oce
ssc
ost
ing 4ma
rks
c
. Ex
pla
int
hef
oll
owi
ngt
ermsa
sus
edi
npr
oce
ssc
ost
ing
i
)sc
rap
i
i
)wa
ste

7
 i
i
i)Bypr
oduc
t
i
v)J
ointpr
oduc
t 8Ma
rks

Se
cti
onB
Youa
ret
oat
tempta
llque
sti
onsi
nthi
sse
cti
on
1.Sal
imli
mi t
e dmanuf
actur
esaproductwhi
chpas
sest
hroughthre
eproces
sesbe
for
ecompl e
tion.
Thefol
lowingdatawasext
rac
tedfromthebook
softhecompanyfort
heyeare
nded31st
December,2014
Pr
oce
ssA Pr
oce
ssB Pr
oce
ssC
Ma
ter
ial
cos
t (
Ghc
) 15,
000 12,
000 8,
000
La
bourc
ost (
Ghc
) 20,
000 15,
000 10,
000
Di
rec
tex
pens
es(
Ghc
) 5,
000 3,
000 2,
000
Fa
ctor
yinput
s(uni
ts) 1,
000uni
ts - -
Totalf
act
oryover
headfortheper
iodwhi
chwasGhc24,
000wasa
pporti
onedonthebas
isofdir
ect
expens
es.
Therewasnormall
ossof200unit
swithsc
rapval
ueofGhc
10.
00peruni
tinProc
e s
sBa ndafurt
her
normall
ossof100unit
sofnos c
rapval
ueinPr
ocessC 15marks

2.
Ashalemanuf
act
uri
ngc
ompa
nyha
sthef
oll
owi
ngi
nfor
mat
ioni
nit
sbook
sfort
hey
eare
nde
d
31/12/2021
Sa
les 2000uni
ts@ GHȻ300

Fi
xedf
act
oryov
erhe
ads GHȻ150000

Fi
xeda
dmi
ni
str
ati
vec
ost GHȻ50,
000

Va
ria
bles
ell
i
nga
nddi
str
ibut
ionov
erhe
ads GHȻ100,
000

Di
rec
tLa
bourc
ost
s GHȻ60pe
runi
t

Di
rec
tma
ter
ial
cos
ts GHȻ60pe
runi
t

Pr
oduc
tionuni
ts 2500uni
ts

8
Va
ria
blef
act
oryov
erhe
ads GHȻ20pe
runi
t

Youa
rer
equi
redt
oas
tat
eme
nts
howi
ngt
hepr
ofi
torl
ossa
ccountf
ort
hec
ompa
nyus
ing

AMa
rgi
nal
cos
tingt
echni
que B Abs
orpt
ionc
ost
ingt
echni
que 15ma
rks