ACCA PM Practice Questions - ACCA Applied Skills - Performance Management (PM) Exam - ACCA PM Practice Questions - ACCA Applied Skills

Question 1

Under activity-based costing (ABC), what is the role of a cost driver?

It is the total overhead absorbed by a product It is the factor that causes the cost of an activity to change It is the rate used to apply direct labour to output It is the budgeted profit margin per unit

Correct Answer:

It is the factor that causes the cost of an activity to change

Question 2

A company uses target costing. Selling price is set at $50 and the required profit margin is 20% of selling price. What is the target cost per unit?

$$30 $$42 $$60 $$40

Correct Answer:

$$40

Question 3

In throughput accounting, the throughput accounting ratio (TPAR) is calculated as:

Return per factory hour divided by cost per factory hour Sales revenue divided by total costs Contribution per unit divided by sales price Throughput per unit divided by material cost per unit

Correct Answer:

Return per factory hour divided by cost per factory hour

Question 4

Life-cycle costing is most useful because it:

Ignores costs incurred before production starts Accumulates all costs over a product's entire life, including design and decommissioning Only measures costs during the maturity phase Replaces the need for budgeting

Correct Answer:

Accumulates all costs over a product's entire life, including design and decommissioning

Question 5

A product has activity costs: machine set-ups $40,000 for 200 set-ups, and the product requires 25 set-ups. What set-up cost is assigned to this product under ABC?

$$5,000 $$4,000 $$8,000 $$10,000

Correct Answer:

$$5,000

Question 1

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About this Exam

Prepare with the ACCA PM Practice Questions - ACCA Applied Skills - Performance Management (PM) Exam practice quiz. This question bank includes 100 questions covering units, cost, hours, variance, and costing. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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ACCA PM Practice Questions - ACCA Applied Skills - Performance Management (PM) Exam

This practice set contains 100 questions from the matching question bank and focuses on units, cost, hours, variance, and costing. 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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ACCA PM Practice Questions - ACCA Applied Skills - Performance Management (PM) Exam

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