Saturday, April 9, 2016

ICAB Management Information Question Analysis Knowledge Level from June 2010 to Dec 2015


ICAB Management Information Question Analysis Knowledge Level from June 2010 to Dec 2015



  1. The fundamentals of costing


  1. What is overhead? Classify different overhead costs with examples. (June-2014)(Marks-3)(Manual page-9)
  2. Define cost object and cost unit. (Dec-2013)(Marks-4)(Manual page-6,7)
  3. Give at least two examples of cost object and cost unit. (Dec-2013)(Marks-4)(Manual page-6,7)
  4. What do you understand by cost objects and cost units? (June-2013)(Marks-3)(Manual page-6,7)
  5. Which of the following objects would be suitable cost units for a hotel? (June-2013)(Marks-6)(Manual page-7)
    • Bar
    • Restaurant
    • Room/night
    • Meal served
    • Conference delegate
    • Fitness suite
    • Conference room/day
  1. Give six examples of cost units applicable to different industries.(June-2013) (Marks-4)(Manual page- )
  2. What are the differences between management accounts and financial accounts? (Dec-2011)(Marks-5)(Manual page-5)
  3. Define opportunity cost and sunk cost. (Dec-2011)(Marks-4)(Manual page- )
  4. Explain the purposes served by the segregation of fixed and variable elements of semi‐variable costs. (June-2011)(Marks- 3)(Manual page- )
  5. How is “Prime cost” different from”Marginal cost”? (June-2011)(Marks-2)(Manual page- )
  6. Define product costs and period costs. Responsibility accounting is a technique that helps-controlling costs, - state briefly how it is done. (Dec-2010)(Marks- 4+3 )(Manual page-10,15)
  7. Which one of the following items might be a costs unit within the management accounting system of a university or a college of further education? (Dec-2010)(Marks-3)(Manual page- )
    • Business studies department
    • A student
    • A college building
    • The university itself.
  1. How cost information helps in decision making? (June-2010)(Marks- 2)(Manual page-9)
  2. Define controllable and uncontrollable cost. (June-2010)(Marks- 2)(Manual page-16)
  3. Analyze costs according to their behavior with a graphical presentation. (June-2010)(Marks-4)(Manual page-13)
  4. What is a cost unit? Why a cost unit would be different depending on the organization. (June-2010)(Marks-4)(Manual page-7)
  5. What should be the cost unit for the following organizations: (June-2010)(Marks-3)(Manual page- )
    • Hospital
    • College
    • Power Station
    • Railway
    • College
    • Telephone Company

  1. Calculating unit cost (Part-1)


  1. Describe the advantages and disadvantages of the LIFO method. (Dec-2013)(Marks-4)(Manual page-24)
  2. Describe advantages and disadvantages of cumulative weighted average pricing. (Dec-2012)(Marks-6)(Manual page- )
  3. Indicate whether each of the following costs would be classified as a direct cost or an indirect cost of a car repairing garage. The repair was worked on in overtime hours due to an unusual repair loads. (June-2011)(Marks-6)(Manual page-29)
    • The salary of the garage accountant.
    • The cost of heating the garage
    • A can of engine oil used in the repair
    • A smear of grease used in the repair.
    • An overtime premium paid to the machine carrying out the repair.
    • An idle time payment made to the machine while waiting for delivery of parts for a number of jobs.
  1. What are the components to be included of a product costs over its life cycle? (June-2011)(Marks-3)(Manual page- )


Math Question
  1. June 2014 (7)
  2. Dec 2013 (2-b)
  3. June 2013 (7)
  4. Dec 2012 (1-b)
  5. June 2012 (2)
  6. Dec 2011 (8)
  7. June 2011 (2-c)
  8. Dec 2010 (2)
  9. June 2010 (5)


  1. Calculating unit cost (Part-2)
  1. Mention two reasons for under or over absorbed overhead? (June-2012)(Marks-3)(Manual page-61)
  2. What is overhead? Classify different overhead costs with examples. (June-2010)(Marks-4)(Manual page- )
  3. Discuss the costing methods with their relevant advantage and disadvantages. (June-2010)(Marks-4)(Manual page- )
  4. Which method of costing should be appropriate for the following industries: (June-2010)(Marks-3)(Manual page- )
    • Chemical Industry
    • Garments Industry
    • Fitting Kitchen Industry
    • Construction Company
    • Electricity Company
    • Paper Industry


Math Question
  1. June 2014(2-b)
  2. June 2012 (1-b)
  3. Dec 2011 (2)
  4. Dec 2010 (12)
  5. June 2010 (7)


  1. Marginal costing and absorption costing
  1. Describe the problems with traditional absorption costing. (Dec-2013)(Marks-3)(Manual page-91)
  2. In what situations is absorption costing more appropriate than marginal costing? (June-2012)(Marks-4)(Manual page- )
  3. Absorption costing and Marginal costing the two techniques are not truly alternatives. Explain it. (June-2011)(Marks-3)(Manual page-84)
  4. Why does Marginal costing technique excludes Fixed Costs. Explain briefly (June-2011)(Marks-2)(Manual page- )


Math Question
  1. Dec 2013 (4-b)
  2. June 2013 (4-b)
  3. June 2012 (2-b)
  4. Dec 2011 (7)
  5. June 2011 (4-c)
  6. June 2010 (4-b)


  1. Pricing calculations


  1. What are the aims of a transfer pricing system? (June-2012)(Marks- 5)(Manual page-113)
  2. What is mark‐up and margin? (June-2011)(Marks-2)(Manual page-111)
  3. Define transfer pricing? (June-2011)(Marks-2)(Manual page-112)
  4. What are the points to take into attention for effective variance reporting? (June-2011)(Marks-5)(Manual page- )
  5. Explain any three control ratios. (June-2011)(Marks-3)(Manual page- )
  6. How can the transfer price influence management decisions? Why might a list price less discount be more appropriate as a transfer price than a list price without discount? (Dec-2010)(Marks-3+3)(Manual page- )
  7. What are the pricing methods used? Discuss their comparative advantages and disadvantages. (June-2010)(Marks-4)(Manual page- )


Math Question
  1. Dec 2013 (3)
  2. June 2012 (3-b)
  3. Dec 2011 (9)
  4. June 2011 (3,9-b)
  5. June 2010 (11-b)


  1. Budgeting


  1. Why have many managers in recent years moved toward emphasizing employee participation in the budgeting process rather than simply imposing the budget on the employees? (June-2014)(Marks-3)(Manual page-148)
  2. Define forecast and budget. How does two differ from each other? What are the essentials of effective budgeting? (Dec-2010)(Marks-1+1+2)(Manual page- )
  3. What do mean by zero-based Budgeting? How it is prepared? What are the advantages of zero-based Budgeting? (Dec-2010)(Marks-2+1+3)(Manual page-149)


Math Question
  1. June 2013 (4)
  2. Dec 2012 (6-c)
  3. June 2012 (4-a,b)
  4. Dec 2010 (3-a,b)


  1. Cash budgets and the cash cycle


  1. What is a cash budget? How is it useful in managerial decision making? (June-2013)(Marks-5)(Manual page-164,165)
  2. What is the cash operating cycle? Describe the importance of cash operating cycle? (Dec-2012)(Marks-6)(Manual page-167,170)
  3. Discuss your understanding about cash operating cycle. (Dec-2012)(Marks-5)(Manual page-168)
  4. What are the two methods of preparing Cash Budgeting? (June-2011)(Marks- 2)(Manual page- )
  5. Distinguish between Cash Budgeting and Cash Flow statement. (June-2011)(Marks- 4)(Manual page- )
  6. What is the cash operating Cycle? (June-2010)(Marks-3)(Manual page-167)


Math Question
  1. June 2014(8-b)
  2. Dec 2012 (2-b)
  3. Dec 2012 (6-b)
  4. June 2012 (6)
  5. June 2011 (5-c)
  6. June 2010 (12-b)


  1. Performance management


  1. Define residual income. Evaluate residual income as a measure of performance. (June-2014)(Marks-4)(Manual page-197)
  2. What are some common problems encountered in determining ROI? (June-2014)(Marks-4)(Manual page-196)
  3. Describe the features of effective feedback. (Dec-2013)(Marks-3)(Manual page-184)
  4. What is flexible budget? Describe two advantages of flexible budget? (Dec-2013)(Marks-6)(Manual page-203)

Math Question
  1. June 2014(9)
  2. Dec 2013 (5-b)
  3. Dec 2013 (7-b,c)
  4. Dec 2011 (5,11)
  5. June 2011 (6,12)
  6. Dec 2010 (7,8)


  1. Standard costing and variance analysis


  1. Write four advantages of standard costing. (Dec-2011)(Marks-4)(Manual page-223)

Math Question
  1. June 2014(4)
  2. June 2013 (5-a,b)
  3. Dec 2012 (5-a,b)
  4. June 2012 (5)
  5. Dec 2011 (6-b)
  6. June 2011 (10-b,11-b)
  7. Dec 2010 (5)
  8. June 2010 (10)


  1. Breakeven analysis and limiting factor analysis


  1. What is P/V ratio? How does it relate to the break‐even point? (June-2014)(Marks-4)(Manual page-251)
  2. What is a limiting factor? (June-2013)(Marks-4)(Manual page-259)
  3. What is cost volume profit analysis? 4(June-2013)(Marks-4)(Manual page-259)
  4. Write four limitations of breakeven analysis. (Dec-2012)(Marks-4)(Manual page-259)
  5. What is P/V ratio? How does it relate to the break-even point? (Dec-2011)(Marks-3)(Manual page-250)


Math Question
  1. June 2014(3-b)
  2. June 2013 (6)
  3. Dec 2012 (3-b)
  4. Dec 2012 (4-b)
  5. Dec 2011 (3-b,4)
  6. June 2011 (7)
  7. June 2010 (8,9)


  1. Investment appraisal techniques


  1. Does a project that generates a positive internal rate of return also have a positive net present value? Explain. (June-2014)(Marks-3)(Manual page-209)
  2. What do you understand by Discounted Cash Flow (DCF)? Write the advantages of DCF Method. (Dec-2012)(Marks-6)(Manual page- )
  3. Explain the payback method of evaluating capital investments and indicate the circumstances in which this method is especially useful. (Dec-2010)(Marks- 3)(Manual page-280)
  4. What is Cost of Capital? What is the relationship between Cost of Capital & IRR? (Dec-2010)(Marks-3)(Manual page- )
  5. What is the difference between NPV and NTV? (June-2010)(Marks-3)(Manual page- )
  6. Write two advantages of NPV method and two disadvantages of ARR method. (June-2010)(Marks-3)(Manual page- )
  7. What is IRR? How it is computed? (June-2010)(Marks-4)(Manual page-295)




Math Question
  1. June 2014(5)
  2. Dec 2013 (6)
  3. June 2013 (8)
  4. Dec 2011 (10)
  5. Dec 2010 (9-c,10)
  6. June 2010 (14)


  1. Short Note


  1. Semi‐variable Costs, (June-2014)(Marks-3)(Manual page-12)
  2. Responsibility Accounting, (June-2014)(Marks-3)(Manual page-16)
  3. Controllable costs. (June-2014)(Marks-3)(Manual page-16)
  4. Incremental Budgeting (June-2014)(Marks-2)(Manual page-149)
  5. Zero based budgeting (June-2014)(Marks-2)(Manual page-148)
  6. Fixed cost (June-2013)(Marks-2)(Manual page-11,12)
  7. Variable cost (June-2013)(Marks-2)(Manual page-11,12)
  8. Semi-variable cost (June-2013)(Marks-2)(Manual page-11,12)
  9. Cost centre (Dec-2010)(Marks-2)(Manual page-189)
  10. Revenue centre (Dec-2010)(Marks-2)(Manual page-189)
  11. Profit centre (Dec-2010)(Marks-2)(Manual page-189)





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