ICAEW ACA Business Insight and Performance Practice Questions - ICAEW ACA Certificate Level - Business Insight and Performance Exam - ICAEW ACA Business Insight and Performance Practice Questions - ICAEW ACA Certificate Level

Question 1

A company classifies its factory rent as a fixed cost. Within the relevant range, what happens to the fixed cost PER UNIT as production volume increases?

It decreases It increases It stays constant It first rises then falls

Correct Answer:

It decreases

Question 2

A variable cost is best described as a cost that:

Stays the same in total regardless of activity Changes in total in direct proportion to activity, but is constant per unit Changes per unit as activity changes but is constant in total Has both a fixed and a variable element

Correct Answer:

Changes in total in direct proportion to activity, but is constant per unit

Question 3

Using the high-low method: at 10,000 units total cost is £85,000; at 6,000 units total cost is £61,000. What is the variable cost per unit?

£10.17 £8.50 £6.00 £4.00

Correct Answer:

£6.00

Question 4

Continuing the high-low data (variable cost £6/unit; total cost £85,000 at 10,000 units), what is the total fixed cost?

£24,000 £60,000 £85,000 £25,000

Correct Answer:

£25,000

Question 5

Under absorption costing, which of the following is included in the valuation of closing inventory but is EXCLUDED under marginal costing?

Fixed production overhead Direct labour Direct materials Variable production overhead

Correct Answer:

Fixed production overhead

Question 1

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About this Exam

Prepare with the ICAEW ACA Business Insight and Performance Practice Questions - ICAEW ACA Certificate Level - Business Insight and Performance Exam practice quiz. This question bank includes 100 questions covering cost, units, costing, unit, and overhead. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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ICAEW ACA Business Insight and Performance Practice Questions - ICAEW ACA Certificate Level - Business Insight and Performance Exam

This practice set contains 100 questions from the matching question bank and focuses on cost, units, costing, unit, and overhead. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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ICAEW ACA Business Insight and Performance Practice Questions - ICAEW ACA Certificate Level - Business Insight and Performance Exam

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