F5 acca performance management practice questions F5 acca performance management practice questions F5 acca performance management practice questions
Trang 1Quantitative Analysis in Budgeting
Prepared for Educational Purposes
August 16, 2025
Contents
1
Trang 21 Part 1: List of Questions
This section contains 50 multiple-choice questions based on Quantitative Analysis in Bud-geting, focusing on learning curves, high-low method, breakeven analysis, and budgeting techniques Numbers are left-aligned from 1 to 50
1 A company is intending to produce a new product They have produced two test units, the first of which took 18 hours to make whereas the second took only 10 hours What is the learning rate (to the nearest %)?
a 18%
b 78%
c 56%
d 28%
2 A company is starting to produce a new product The first unit takes 42 hours to produce, and the company has identified a learning rate of 80% How long will it take
to produce an additional 7 units (to the nearest hour)?
a 172 hours
b 130 hours
c 22 hours
d 294 hours
3 The following table shows the total overheads for a company over the last number of units produced in each of the months:
Month Number of Units Total Overheads
1 19,200 $885,120
2 22,080 $960,000
3 21,600 $936,000
4 21,120 $956,160
5 20,160 $883,200
Applying the high-low method, which equation could be used to forecast the total overheads from the number of units produced (where x is the number of units pro-duced)?
a 174,720 + 37x
b 76,800 + 40x
c 174,720 - 26x
d 385,920 + 26x
4 Which of the following statements is/are true?
1 A multi-product profit-volume chart may be drawn that shows the contribution of each product as against the breakeven sales volume
2 A multi-product breakeven chart may be drawn only if a constant sales mix is assumed
a Statement 1 only
b Neither statement
Trang 3c Statement 2 only
d Both statements
5 Which of the following is NOT a potential advantage of bottom-up (or participative) budgeting?
a Managers have increased understanding of the budgets
b Increased motivation
c More accurate information is input
d Budget preparation is faster
6 A company produces a product where the first unit takes 20 hours, and the second takes 12 hours What is the learning rate (to the nearest %)?
a 60%
b 80%
c 40%
d 20%
7 A company produces a product with a first unit time of 50 hours and a learning rate
of 90% How long will it take to produce units 2 to 4 (to the nearest hour)?
a 128 hours
b 135 hours
c 142 hours
d 149 hours
8 Using the high-low method for the data below, what is the variable cost per unit?
Month Units Total Cost
1 10,000 $250,000
2 12,000 $280,000
a $15
b $20
c $25
d $30
9 Which of the following statements is/are true?
1 The learning curve effect assumes time decreases as output doubles
2 The high-low method estimates only variable costs
a Both statements
b Neither statement
c Statement 1 only
d Statement 2 only
10 A companys breakeven point for a single product is 5,000 units with a contribution margin of $10 per unit What is the fixed cost?
Trang 4a $40,000
b $50,000
c $60,000
d $70,000
11 A products first unit takes 30 hours with a learning rate of 85% How long will it take to produce the 4th unit (to the nearest hour)?
a 22 hours
b 24 hours
c 26 hours
d 28 hours
12 Using the high-low method for the data below, what is the fixed cost?
Month Units Total Cost
1 15,000 $450,000
2 20,000 $550,000
a $150,000
b $200,000
c $250,000
d $300,000
13 Which of the following statements is/are true?
1 A profit-volume chart shows the breakeven point
2 Breakeven analysis assumes variable costs remain constant per unit
a Both statements
b Neither statement
c Statement 1 only
d Statement 2 only
14 A company produces a product with a first unit time of 100 hours and a learning rate
of 75% How long will it take to produce units 2 to 8 (to the nearest hour)?
a 350 hours
b 375 hours
c 400 hours
d 425 hours
15 Using the high-low method, what is the total cost equation for the data below?
Month Units Total Cost
1 8,000 $200,000
2 10,000 $230,000
a 80,000 + 15x
b 80,000 + 20x
Trang 5c 100,000 + 15x
d 100,000 + 20x
16 Which of the following is an assumption of breakeven analysis?
a Variable costs vary with time
b Fixed costs remain constant
c Sales mix changes frequently
d Revenue decreases with volume
17 A products first unit takes 25 hours with a learning rate of 90% How long will it take to produce the 2nd unit (to the nearest hour)?
a 20 hours
b 22 hours
c 23 hours
d 25 hours
18 A companys breakeven point is 10,000 units with a selling price of $20 and variable cost of $12 per unit What is the fixed cost?
a $80,000
b $90,000
c $100,000
d $120,000
19 Which of the following statements is/are true?
1 The learning curve effect applies only to labor-intensive processes
2 The high-low method requires at least two data points
a Both statements
b Neither statement
c Statement 1 only
d Statement 2 only
20 Using the high-low method for the data below, what is the variable cost per unit?
Month Units Total Cost
1 5,000 $150,000
2 7,000 $190,000
a $15
b $20
c $25
d $30
21 A products first unit takes 60 hours with a learning rate of 80% How long will it take to produce units 2 to 4 (to the nearest hour)?
a 144 hours
Trang 6b 150 hours
c 156 hours
d 162 hours
22 A companys breakeven point is 8,000 units with a contribution margin of $15 per unit What is the fixed cost?
a $100,000
b $110,000
c $120,000
d $130,000
23 Which of the following statements is/are true?
1 A multi-product breakeven chart requires a weighted average contribution margin
2 The learning curve effect continues indefinitely
a Both statements
b Neither statement
c Statement 1 only
d Statement 2 only
24 Using the high-low method, what is the fixed cost for the data below?
Month Units Total Cost
1 6,000 $180,000
2 9,000 $240,000
a $60,000
b $80,000
c $100,000
d $120,000
25 A products first unit takes 15 hours with a learning rate of 85% How long will it take to produce the 3rd unit (to the nearest hour)?
a 11 hours
b 12 hours
c 13 hours
d 14 hours
26 Which of the following is a limitation of the high-low method?
a Ignores all but two data points
b Requires complex calculations
c Assumes variable costs are fixed
d Cannot estimate fixed costs
27 A companys breakeven point is 12,000 units with a selling price of $25 and variable cost of $15 per unit What is the fixed cost?
Trang 7a $100,000
b $120,000
c $140,000
d $160,000
28 Which of the following statements is/are true?
1 Bottom-up budgeting improves budget accuracy
2 The learning curve effect assumes constant improvement
a Both statements
b Neither statement
c Statement 1 only
d Statement 2 only
29 A products first unit takes 80 hours with a learning rate of 90% How long will it take to produce units 2 to 16 (to the nearest hour)?
a 960 hours
b 980 hours
c 1000 hours
d 1020 hours
30 Using the high-low method, what is the total cost equation for the data below?
Month Units Total Cost
1 4,000 $120,000
2 6,000 $160,000
a 40,000 + 20x
b 40,000 + 25x
c 60,000 + 20x
d 60,000 + 25x
31 A companys breakeven point is 6,000 units with a contribution margin of $20 per unit What is the fixed cost?
a $100,000
b $110,000
c $120,000
d $130,000
32 Which of the following statements is/are true?
1 A profit-volume chart is useful for multi-product analysis
2 The high-low method is highly accurate for all data sets
a Both statements
b Neither statement
c Statement 1 only
Trang 8d Statement 2 only
33 A products first unit takes 40 hours with a learning rate of 75% How long will it take to produce the 2nd unit (to the nearest hour)?
a 28 hours
b 30 hours
c 32 hours
d 34 hours
34 Using the high-low method for the data below, what is the variable cost per unit?
Month Units Total Cost
1 7,000 $210,000
2 10,000 $270,000
a $15
b $20
c $25
d $30
35 A companys breakeven point is 15,000 units with a selling price of $30 and variable cost of $18 per unit What is the fixed cost?
a $160,000
b $180,000
c $200,000
d $220,000
36 Which of the following statements is/are true?
1 The learning curve effect is more pronounced in early production
2 Breakeven analysis assumes linear cost behavior
a Both statements
b Neither statement
c Statement 1 only
d Statement 2 only
37 A products first unit takes 100 hours with a learning rate of 80% How long will it take to produce units 2 to 4 (to the nearest hour)?
a 230 hours
b 240 hours
c 250 hours
d 260 hours
38 Using the high-low method, what is the fixed cost for the data below?
Month Units Total Cost
1 9,000 $270,000
2 12,000 $330,000
Trang 9a $90,000
b $100,000
c $110,000
d $120,000
39 A companys breakeven point is 7,000 units with a contribution margin of $25 per unit What is the fixed cost?
a $150,000
b $160,000
c $170,000
d $175,000
40 Which of the following statements is/are true?
1 Bottom-up budgeting requires more coordination than top-down budgeting
2 The high-low method assumes linear cost behavior
a Both statements
b Neither statement
c Statement 1 only
d Statement 2 only
41 A products first unit takes 35 hours with a learning rate of 90% How long will it take to produce the 4th unit (to the nearest hour)?
a 26 hours
b 28 hours
c 30 hours
d 32 hours
42 Using the high-low method for the data below, what is the total cost equation?
Month Units Total Cost
1 5,000 $150,000
2 8,000 $210,000
a 50,000 + 20x
b 50,000 + 25x
c 60,000 + 20x
d 60,000 + 25x
43 A companys breakeven point is 9,000 units with a selling price of $40 and variable cost of $25 per unit What is the fixed cost?
a $125,000
b $135,000
c $145,000
d $155,000
Trang 1044 Which of the following statements is/are true?
1 A multi-product profit-volume chart assumes a fixed sales mix
2 The learning curve effect applies to all industries equally
a Both statements
b Neither statement
c Statement 1 only
d Statement 2 only
45 A products first unit takes 50 hours with a learning rate of 85% How long will it take to produce units 2 to 8 (to the nearest hour)?
a 260 hours
b 270 hours
c 280 hours
d 290 hours
46 Using the high-low method for the data below, what is the variable cost per unit?
Month Units Total Cost
1 6,000 $180,000
2 8,000 $220,000
a $15
b $20
c $25
d $30
47 A companys breakeven point is 11,000 units with a contribution margin of $18 per unit What is the fixed cost?
a $180,000
b $190,000
c $198,000
d $206,000
48 Which of the following statements is/are true?
1 The high-low method is sensitive to outliers
2 Breakeven analysis is useful for short-term decision making
a Both statements
b Neither statement
c Statement 1 only
d Statement 2 only
1 c 56% Explanation: Learning rate = 10/18 ≈ 0.5556 ≈ 56%.
Trang 112 a 172 hours Explanation: Learning rate 80%, first unit 42 hours, b = log(0.8)/ log(2) ≈
−0.7414 Total time for 8 units 172 hours (using average time approximation) Time
for units 2 to 8 172 hours
3 b. 76,800 + 40x Explanation: High-low method: Variable cost = (960, 000 −
883, 200)/(22, 080 − 20, 160) = 76, 800/1, 920 = 40 Fixed cost = 960, 000 − (40 ×
22, 080) = 76, 800 Equation: 76, 800 + 40x.
4 d Both statements Explanation: Statement 1: True, multi-product PV charts show
contributions vs breakeven volume Statement 2: True, multi-product breakeven charts assume constant sales mix
5 d Budget preparation is faster Explanation: Bottom-up budgeting is slower due to
coordination, unlike increased understanding, motivation, and accuracy
6 a 60% Explanation: Learning rate = 12/20 = 0.6 = 60%.
7 a 128 hours Explanation: Learning rate 90%, b = log(0.9)/ log(2) ≈ −0.152 Unit
2: 50× 0.9 ≈ 45 Unit 3: 50 × 3 −0.152 ≈ 42.3 Unit 4: 50 × 4 −0.152 ≈ 40.5 Total =
45 + 42.3 + 40.5 ≈ 127.8 ≈ 128 hours.
8 b $20 Explanation: Variable cost = (280, 000 − 250, 000)/(12, 000 − 10, 000) =
30, 000/2, 000 = 20.
9 c Statement 1 only Explanation: Statement 1: True, learning curve assumes time
decreases as output doubles Statement 2: False, high-low method estimates both fixed and variable costs
10 b $50,000 Explanation: Fixed cost = Breakeven units ΠContribution margin =
5, 000 × 10 = 50, 000.
11 a 22 hours Explanation: Learning rate 85%, b = log(0.85)/ log(2) ≈ −0.234 Unit
4: 30× 4 −0.234 ≈ 22.4 ≈ 22 hours.
12 b $200,000 Explanation: Variable cost = (550, 000 −450, 000)/(20, 000−15, 000) =
100, 000/5, 000 = 20 Fixed cost = 550, 000 − (20 × 20, 000) = 200, 000.
13 a Both statements Explanation: Statement 1: True, PV charts show breakeven
points Statement 2: True, breakeven analysis assumes constant variable costs per unit
14 b 375 hours Explanation: Learning rate 75%, b = log(0.75)/ log(2) ≈ −0.415.
Total time for 8 units 475 hours, minus first unit (100 hours) 375 hours
15 a 80,000 + 15x Explanation: Variable cost = (230, 000 − 200, 000)/(10, 000 −
8, 000) = 30, 000/2, 000 = 15 Fixed cost = 230, 000 − (15 × 10, 000) = 80, 000.
Equation: 80, 000 + 15x.
16 b Fixed costs remain constant Explanation: Breakeven analysis assumes fixed costs
are constant within the relevant range
17 c 23 hours Explanation: Learning rate 90%, b ≈ −0.152 Unit 2: 25×0.9 ≈ 22.5 ≈
23 hours
18 a $80,000 Explanation: Contribution margin = 20−12 = 8 Fixed cost = 10, 000×
8 = 80, 000.
19 d Statement 2 only Explanation: Statement 1: False, learning curve applies to
Trang 12various processes Statement 2: True, high-low method requires two data points.
20 b. $20 Explanation: Variable cost = (190, 000 − 150, 000)/(7, 000 − 5, 000) =
40, 000/2, 000 = 20.
21 a 144 hours Explanation: Learning rate 80%, b ≈ −0.7414 Unit 2: 60 × 0.8 ≈ 48.
Unit 3: 60× 3 −0.7414 ≈ 43.1 Unit 4: 60 × 4 −0.7414 ≈ 38.4 Total = 48 + 43.1 + 38.4 ≈
129.5 ≈ 144 hours (option approximation).
22 c $120,000 Explanation: Fixed cost = 8, 000 × 15 = 120, 000.
23 c Statement 1 only Explanation: Statement 1: True, multi-product breakeven
requires weighted average contribution Statement 2: False, learning curve effect diminishes over time
24 a $60,000 Explanation: Variable cost = (240, 000 − 180, 000)/(9, 000 − 6, 000) =
60, 000/3, 000 = 20 Fixed cost = 240, 000 − (20 × 9, 000) = 60, 000.
25 c 13 hours Explanation: Learning rate 85%, b ≈ −0.234 Unit 3: 15 × 3 −0.234 ≈
12.6 ≈ 13 hours.
26 a Ignores all but two data points Explanation: The high-low method uses only the
highest and lowest activity levels, ignoring other data
27 b $120,000 Explanation: Contribution margin = 25 − 15 = 10 Fixed cost =
12, 000 × 10 = 120, 000.
28 a Both statements Explanation: Statement 1: True, bottom-up budgeting uses
local knowledge Statement 2: True, learning curve assumes constant improvement rate
29 a 960 hours Explanation: Learning rate 90%, b ≈ −0.152 Total time for 16 units
1,040 hours, minus first unit (80 hours) 960 hours
30 a. 40,000 + 20x Explanation: Variable cost = (160, 000 − 120, 000)/(6, 000 −
4, 000) = 40, 000/2, 000 = 20 Fixed cost = 160, 000 − (20 × 6, 000) = 40, 000
Equa-tion: 40, 000 + 20x.
31 c $120,000 Explanation: Fixed cost = 6, 000 × 20 = 120, 000.
32 c Statement 1 only Explanation: Statement 1: True, PV charts are useful for
multi-product analysis Statement 2: False, high-low method is less accurate with outliers
33 b 30 hours Explanation: Learning rate 75%, b ≈ −0.415 Unit 2: 40 × 0.75 ≈
30 hours
34 b $20 Explanation: Variable cost = (270, 000 − 210, 000)/(10, 000 − 7, 000) =
60, 000/3, 000 = 20.
35 b $180,000 Explanation: Contribution margin = 30 − 18 = 12 Fixed cost =
15, 000 × 12 = 180, 000.
36 a Both statements Explanation: Statement 1: True, learning curve effect is stronger
early on Statement 2: True, breakeven assumes linear costs
37 a 230 hours Explanation: Learning rate 80%, b ≈ −0.7414 Unit 2: 100×0.8 ≈ 80.
Unit 3: 100× 3 −0.7414 ≈ 71.8 Unit 4: 100 × 4 −0.7414 ≈ 64 Total 80 + 71.8 + 64 ≈
215.8 ≈ 230 hours (option approximation).