Practice ICAN management information 2021 Past Questions

Question 1 View Details

Which of the following best describes Prime Cost and Production Cost?

A. Prime cost is the same as production cost

Correct B. Prime cost plus manufacturing indirect cost is production cost

C. Prime cost minus manufacturing overhead is production cost

D. Prime cost plus all direct costs is production cost

E. Prime cost plus fixed costs is production cost

Correct Answer: B

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Question 2 View Details

Perpetual inventory is a method of recording inventory

A. Everyday

B. Every weekend

C. In perpetuity

D. After each physical stock count

Correct E. After each movement in stock

Correct Answer: E

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Question 3 View Details

Overhead apportionment is a process of

Correct A. Charging costs to a number of cost centres or units

B. Direct allocation of costs to cost centres or cost units

C. Accounting for some portion of costs and carrying forward the balance

D. Sharing costs into direct and indirect elements

E. Differentiating between variable and fixed costs

Correct Answer: A

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Question 4 View Details

Which of the following is NOT true about contribution?

A. Contribution equals sales minus variable costs

B. Contribution equals profit plus fixed costs

C. Zero contribution means total sales equal total variable costs

Correct D. Contribution equals net profit

E. If total contribution fails to cover fixed costs, the result is a loss

Correct Answer: D

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Question 5 View Details

Notional profit is

A. Profit made by all companies in a nation

Correct B. Profit estimated on an on-going contract at the end of a financial year

C. Profit earned from all branches of a business nationwide

D. Estimated profit on a job about to be commenced

E. Profit earned on a contract just concluded

Correct Answer: B

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Question 6 View Details

Which of the following is NOT associated with process costing?

A. Normal loss

B. Abnormal loss

C. Abnormal gain

D. Equivalent units

Correct E. Cost of goods sold

Correct Answer: E

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Question 7 View Details

Abnormal gain is calculated as

A. Unexpected profit from price increase due to sudden jump in demand

B. Profit from sale of fixed assets

Correct C. Normal loss minus actual loss

D. Donations and subventions received unexpectedly

E. Profit realised outside the normal course of business

Correct Answer: C

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Question 8 View Details

A company uses 40,000 units of an item per annum. It is recorded that the holding costs are N4 per unit and ordering cost is N50 per order. The Economic Order Quantity is

A. 2,500

B. 1,500

Correct C. 1,000

D. 800

E. 500

Correct Answer: C

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Question 9 View Details

Which of the following usually makes use of composite cost unit?

A. Job costing

B. process costing

C. contract costing

D. batch costing

Correct E. service costing

Correct Answer: E

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Question 10 View Details

XYZ Company has the following budget for the coming year: \( \begin{array}{lr} \text{Production} & 144,000 \text{ units} \\ \text{Sales} & 140,000 \text{ units} \\ \textbf{Materials:} & \\ \text{Usage per unit} & 4\text{kg} \\ \text{Opening inventory} & 8,000 \text{ kg} \\ \text{Closing inventory} & 10,000 \text{ kg} \end{array} \) The material purchase budget is

Correct A. 578,000kg

B. 574,000kg

C. 568,000kg

D. 562,000kg

E. 558,000kg

Correct Answer: A

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Question 11 View Details

Last month when a company had an opening inventory of 16,500 units and closing inventory of 18,000 units, the profit using absorption costing was N40,000. The fixed production overhead rate was N10 per unit. Using marginal costing, the profit for last month would be

A. N75,000

B. N65,000

C. N55,000

Correct D. N25,000

E. N15,000

Correct Answer: D

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Question 12 View Details

You are given the following data: \( \begin{array}{lr} & \text{₦} \\ \text{Budgeted sales} & 500,000 \\ \text{Budgeted contribution} & 200,000 \\ \text{Budgeted profit} & 50,000 \end{array} \) The break-even sales is

A. N475,000

B. N450,000

Correct C. N375,000

D. N350,000

E. N125,000

Correct Answer: C

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Question 13 View Details

Which of the following is NOT a subset of a database?

A. Record

Correct B. Byte

C. Field

D. Text

E. Table

Correct Answer: B

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Question 14 View Details

Which of the following is NOT a unit used for measuring the capacity of computer memory?

A. Gigabyte

Correct B. Multibyte

C. Megabyte

D. Byte

E. Kilobyte

Correct Answer: B

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Question 15 View Details

A software program that is designed to perform a specific task is known as

A. Operating system

B. System software

C. Localised software

D. Utility software

Correct E. Application package

Correct Answer: E

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Question 16 View Details

Which of the following is carried out by the control unit?

A. Performs logical comparison

B. Receives the results of processing from the processor

Correct C. Interprets the instructions

D. Performs multiplication and division

E. Performs addition and subtraction

Correct Answer: C

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Question 17 View Details

Which of the following is NOT a function performed by a system software?

A. Provision of utility services

B. Providing settings for application packages

C. Enabling the use of peripheral devices

D. Memory management

Correct E. Providing suitable environment for program development

Correct Answer: E

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Question 18 View Details

In a batch processing system, which of the following is the first stage?

A. Data validation

B. Data verification

Correct C. Job waiting in a queue

D. Storage of output

E. Writing on printed sheet

Correct Answer: C

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Question 19 View Details

Which of the following is NOT part of implementation activities during system development?

A. Changeover procedures

Correct B. System specification

C. End-user training

D. System testing

E. File conversion

Correct Answer: B

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Question 20 View Details

The coding of data into a form that is not understandable to a casual reader is called

A. Firewall

B. Password

Correct C. Encryption

D. Digital Signature

E. Logging

Correct Answer: C

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Question 1 View Details

Cost-volume-profit analysis is used to show how costs and profits react or change with changes in the volume of activity.

Requirements

(a)

State FIVE assumptions underlying the above propositions (5 Marks)

(b)

Sekeseke manufacturing company sold 250,000 units of its product called “CHAIN” at N20 per unit. The variable costs of N15 per unit consist of manufacturing cost of N12 and selling expenses of N3. The fixed costs incurred evenly throughout the year amounted to N486,000 consisting of administrative overhead of N300,000 and selling overheads of N186,000. You are required to calculate: i. The breakeven point in Units and Naira (4 Marks) ii. The contribution/sales ratio iii. The number of units that must be sold to earn a profit of N75,000 iv. The number of units that must be sold to earn an after tax profit of N112,000, if the tax rate is 30% v. The number of units required to break even if the variable cost increased by 6% and fixed cost by 2.5%.

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Question 2 View Details

Segelu Nigeria Limited is a construction company located in Bukuai Local Government. The company commenced the construction of a health centre building on 3 January, 2018 for a contract price of N30,000,000 with completion date of February 2019. Estimated cost of the contract was N21,000,000. The construction company’s financial year end was 30 September 2018, with the following balances extracted from the books of accounts on that date. \( \begin{array}{lr} & \text{₦} \\ \text{Materials issued to site} & 3,220,000 \\ \text{Materials returned from site} & 250,000 \\ \text{Wages of workers paid} & 1,250,000 \\ \text{Own plant in use on site (at cost)} & 2,200,000 \\ \text{Plant hire and scaffolding} & 1,050,000 \\ \text{Head office expenses} & 1,220,000 \\ \text{Supervisory staff: direct} & 485,000 \\ \quad \quad \quad \quad \quad \quad \text{indirect} & 480,000 \\ \text{Value of work certified to 30 September 2018} & 16,200,000 \\ \text{Cost of work not yet certified} & 2,150,000 \\ \text{Progress payments} & 12,150,000 \\ \text{Material on site 30 September 2018} & 580,000 \\ \text{Workers' wages due but unpaid} & 125,000 \end{array} \) Depreciation on plant is to be provided at the rate of 15% per annum on cost. \( \text{You are required to prepare:} \)

Requirements

(a)

The contract account as at 30 September, 2018 assuming the contract commenced 3 January 2018.

(b)

Contractee account

(c)

An extract from the construction company’s financial position at 30 September 2018.

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Question 3 View Details

Koloko Wakama Plc trades in farm feeds. The following information relate to the movement of inventory for the month of June 2019: \( \begin{array}{llr} \text{Date} & \text{Units} & \text{Cost/Unit} \\ \text{June 6} & 20,000 & \text{₦}10.00 \\ \text{June 16} & 15,000 & \text{₦}12.50 \\ \text{June 26} & 30,000 & \text{₦}15.00 \\ & & \\ \text{The following issues were made to the production floor from the store department:} & & \\ \text{Date} & \text{Units} & \\ \text{June 8} & 8,000 & \\ \text{June 18} & 10,000 & \\ & & \\ & 34 & \\ & & \\ \text{June 24} & 6,000 & \\ \text{June 29} & 20,000 & \end{array} \) \(\text{You are required to: }\)

Requirements

(a)

Determine the value of closing inventory and the value of the materials issued as at the end of June, 2019 using i. First-in-irst-out (FIFO) method (7 Marks) ii. Last-in-first-out (LIFO) method (7 Marks)

(b)

List SIX factors to be considered in choosing methods of pricing material issued to production. (6 Marks)

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Question 4 View Details

From the information below, prepare a monthly cash budget for Wareroom Trading Limited for the first three months of 2020 using a columnar format. \( \begin{array}{lrrrrr} & \text{NOV 2019} & \text{DEC 2019} & \text{JAN 2020} & \text{FEB 2020} & \text{MAR 2020} \\ & \text{₦} & \text{₦} & \text{₦} & \text{₦} & \text{₦} \\ \text{Sales} & 850,000 & 950,000 & 720,000 & 750,000 & 780,000 \\ \text{Purchases} & 360,000 & 360,000 & 300,000 & 400,000 & 350,000 \end{array} \)

Requirements

((i))

All sales are on credit, collectable 50% in 30 days, 25% in 60 days, 20% in 90 days and balance regarded as bad debts.

((ii))

All purchases are also on credit, payable 40% in 30 days and 30% each in 60 and 90 days respectively.

((iii))

A new generator costing N455,000 will be acquired in February under a 30day credit agreement.

((iv))

An old car will be sold for N50,000 cash in February.

((v))

Monthly salaries are N80,000 payable as and when due.

((vi))

Commission on sales are 5% payable to sales agents 2 months in arrears.

((vii))

Company income tax of N235,000 is due and payable in January.

((viii))

An investment is expected to bring in N60,000 gross in February, subject to 10% withholding tax.

((ix))

The staff christmas party in December is expected to cost the company a total of N90,000, though 60% of the expenses will be settled the following month.

((x))

Assume an overdraft of N283,000 on 31 December 2019.

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Question 5 View Details

Requirements

(a)

Define computer forensics. (2 Marks)

(b)

State TWO uses of computer forensics. (2 Marks)

(c)

List FIVE techniques used in forensic process and briefly describe each. (10 Marks)

(d)

Define social networking, stating TWO benefits and TWO risks of social networking. (6 Marks)

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ICAN 2021 Management Information | Mixed

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

Detailed Essay Solution & Marking Scheme Available

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