Practice ICAN management accounting 2026 Past Questions

Question 1 View Details

The name of a web containing the information about the resource you are looking for and the protocol needed to access is called

A. Uniform resource names

B. Uniform resource web

Correct C. Uniform resource locator

D. Identifier resource web

Correct Answer: C

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Question 2 View Details

Calculate the machine hour rate if overhead is N56,000, machine setup time is 800 hours and the machine hours is 8,000.

A. N6.36

Correct B. N7.00

C. N 7.78

D. N10.0

Correct Answer: B

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Question 3 View Details

Which of the following is NOT a product cost?

A. Direct Materials

B. Factory rent

Correct C. Office salaries

D. Direct labour

Correct Answer: C

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Question 4 View Details

The method of allocating costs where two or more users share resources is called

A. Continuous cost allocation method

Correct B. Incremental cost allocation method

C. Direct allocation method

D. Users’ allocation method

Correct Answer: B

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Question 5 View Details

If total fixed costs are N120,000 and variable cost per unit is N15. What is the total cost when 5,000 units are produced?

A. N15,000

B. N75,000

C. N120,000

Correct D. N195,000

Correct Answer: D

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Question 6 View Details

Use the following information to answer questions 6 and 7.
A company estimated overhead of N300,000 and machine hours of 10,000 for the year.
Actual overheads was N320,000 and actual machine hours were 9,000.

What is the predetermined overhead rate?

Correct A. N30 per machine hour

B. N32 per machine hour

C. N33.33 per machine hour

D. N35.56 per machine hour

Correct Answer: A

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Question 7 View Details

The overhead absorbed would be

A. N300,000

Correct B. N270,000

C. N320,000

D. N350,000

Correct Answer: B

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Question 8 View Details

Solo Ltd produces a product with the following details: Standard material per unit 10kg @ N5. Actual usage per unit was 11kg @ N5.10. Units purchased was 6,000 units. What is the material price variance.

A. N1,950 Favourable

B. N1,950 Adverse

C. N600 Favourable

Correct D. N600 Adverse

Correct Answer: D

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Question 9 View Details

Find the variable cost per unit from the information below using the high and low method: \( \begin{array}{lrr} \text{Period} & \text{Units produced} & \text{Costs} \\ & & \text{₦} \\ \text{July} & 4,300 & 401,600 \\ \text{August} & 5,500 & 416,000 \\ \text{September} & 4,800 & 407,600 \\ \text{October} & 5,100 & 411,200 \\ \text{November} & 4,200 & 400,400 \end{array} \)

A. N16 per unit

B. N15 per unit

C. N13 per unit

Correct D. N12 per unit

Correct Answer: D

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Question 10 View Details

In a company, the budgeted machine hours were 25,000 with overheads of ₦425,000. The actual results were 25,500 hours and overhead of ₦430,000. If the absorption rate is machine hour based, then, overhead is:

A. Over-absorbed by ₦5,300

B. Under-absorbed by ₦5,000

Correct C. Over-absorbed by ₦3,500

D. Under-absorbed by ₦3,500

Correct Answer: C

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Question 11 View Details

Which of the following is a cost accounting system of production that works on demand-pull basis?

Correct A. Just-in-Time

B. ABC Analysis

C. Pareto Analysis

D. Marginal costing

Correct Answer: A

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Question 12 View Details

The process of examining substantial and complex datasets is known as:

A. Prescriptive analytics

B. Diagnostic analytics

C. Descriptive analytics

Correct D. Big data analytics

Correct Answer: D

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Question 13 View Details

The information below relates to product Zee: Selling price per unit N40 Variable cost per unit N25 Units sold 60,000 Fixed costs N250,000 What is the total variable cost?

A. N650,000

B. N900,000

C. N1,150,000

Correct D. N1,500,000

Correct Answer: D

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Question 14 View Details

A product sells for N80, has a variable cost of N50 and total fixed cost of N150,000. What is the breakeven point in units?

A. 3,000 units

B. 4,000 units

Correct C. 5,000 units

D. 6,000 units

Correct Answer: C

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Question 15 View Details

The information below relates to product Kitty \( \begin{array}{lr} \text{Product Kitty} & \text{Cost Per Unit} \\ & \text{₦} \\ \text{Selling price} & 10,000 \\ \text{Direct materials} & 3,500 \\ \text{Direct labour} & 2,500 \\ \text{Variable overheads} & 1,000 \end{array}\) Budgeted fixed overhead N2,700,000. What is the break-even point in value?

Correct A. N9,000,000

B. N6,750,000

C. N6,700,000

D. N4,450,000

Correct Answer: A

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Question 16 View Details

Which of the following is an example of continuous operation costing?

Correct A. Process costing

B. Contract costing

C. Batch costing

D. Marginal costing

Correct Answer: A

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Question 17 View Details

Which of the following is NOT part of human aspects of budgeting?

Correct A. Individual differences

B. Participation

C. Goal congruence

D. Motivation

Correct Answer: A

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Question 18 View Details

What is the labour rate variance if standard labour rate is N12 per hour and the actual labour cost for a period is N270,000 for 24,000 hours?

A. N12,000 Adverse

B. N12,000 Favourable

Correct C. N18,000 Favourable

D. N18,000 Adverse

Correct Answer: C

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Question 19 View Details

A company has the following details: Total cost N6,000,000 Fixed cost N1,500,000 Output for the period 200,000 units Capacity utilised 70% Selling price per unit is N45. If a customer made an offer to buy the 50,000 units at a lower price, what is the minimum unit price the company should accept with a minimum gain of N5 per unit?

Correct A. N27.50

B. N30.00

C. N37.50

D. N40.00

Correct Answer: A

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Question 20 View Details

Calculate the variable overhead efficiency variance using the following data: Variable overhead absorption rate N10.00 per hour Standard hours of production 3,500 hours per unit Actual hours of production 3,200 hours per unit

A. N1,000 Adverse

Correct B. N3,000 Favourable

C. N3,000 Adverse

D. N4,000 Favourable

Correct Answer: B

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Question 1 View Details

The stores data of Royal Nig. Ltd for the month of July, 2025 is as follows: \( \begin{array}{lrrr} \text{Date} & \text{Receipts} & \text{Purchase} & \text{Issues} \\ & \text{Units} & \text{Price} & \text{Units} \\ 01/07 & 3,000 & \text{₦}4.00 & \\ 07/07 & 4,000 & \text{₦}3.50 & \\ 10/07 & & & 2,500 \\ 19/07 & & & 3,000 \\ 21/07 & 3,500 & \text{₦}4.10 & \\ 28/07 & & & 3,000 \end{array} \) Prepare the stores ledger accounts in the tabular form using:

Requirements

(a)

The First-In, First-Out Method showing daily balances as memo on the table.

(b)

The Last-In, First-Out Method showing daily balances as memo on the table. State the value of the closing stock below each table.

(c)

Prepare an operating statement assuming the selling price per unit is N10 under the two methods.

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Question 2 View Details

The following are the expenditure heads of Orire Nig. Ltd., a manufacturing company using the numeric system of coding: i. Wages of factory supervisor; ii. Plastics used as input in manufacturing; iii. Iron materials used in manufacturing; iv. Office personnel wages; v. Sales adverts; vi. Factory workers’ wages; vii. Production machinery repairs; viii. Finance and admin director’s salary; ix. Production machine’s depreciation; and x. Items used in production department. The coding systems are as follows: Direct materials 1000 – 1100 Direct wages 1101 – 1200 Direct expenses 1201 – 1300 Indirect materials 1301 – 1400 Indirect wages 1401 – 1500 Indirect expenses 1501 – 1600 Personnel salaries 1601 – 1700 Cost Centre Codes: Charged to cost unit 100 Charged to production cost centres 101 – 200 Charged to admin cost centres 201 – 300 Charged to selling and distribution cost centres 301 – 400 \(Required:\) Prepare a table of the expenditure item with the relevant block codes and the cost centre codes example: \( \begin{array}{llll} \text{Expenditure} & \text{Block code} & \text{cost centre code} & \\ \text{Charge hand's wages} & 1401 - 1500 & 101 - 200 & (10 \text{ Marks}) \end{array} \)

Requirements

(a)

Example: Expenditure Block code cost centre code Charge hand’s wages 1401 – 1500 101 – 200

(b)

State and briefly explain FIVE characteristics of big data.

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Question 3 View Details

Nyanya Lines Ltd has just acquired six buses to ply either Nyanya to Wuse or Nyanya to Gwagwalada. Each bus has 48 seats for passengers and two other seats to be used by the driver and his assistant (conductor). The journey from Nyanya to Wuse takes 1.5 hours whereas Gwagwalada is four hours from Nyanya. Each bus is ready to board passengers by 6.00a.m. and this takes approximately 1 hour at the Nyanya terminus, and the same amount of time at both Wuse and Gwagwalada. The buses park for each day at 9.00p.m. The passenger pays N500 to Wuse between Sunday – Thursday, and N700 on Fridays – Saturdays. The return journey costs N700, per passenger on Sundays and Mondays and N500 on the other days. The trip to Gwagwalada is N1,000 per passenger to and fro. The following pieces of information are relevant: Weekly operating charges (per vehicle): \(\begin{array}{lrr} & \textbf{Nyanya-Wuse} & \textbf{Nyanya- Gwagwalada} \\ & \text{₦} & \text{₦} \\ \text{Petrol} & 350,000 & 495,000 \\ \text{Grease} & 15,000 & 14,000 \\ \text{Sundry expenses} & 230,000 & 220,000 \\ \\ \text{Monthly maintenance charges (per vehicle)} & & \\ \\ & \textbf{Nyanya-Wuse} & \textbf{Nyanya- Gwagwalada} \\ & \text{₦} & \text{₦} \\ \text{Tyres} & 200,000 & 280,000 \\ \text{Repairs} & 100,000 & 140,000 \\ \text{Fixed charges (per vehicles) per annum, irrespective of route} & & \\ & & \text{₦} \\ \text{Insurance} & & 1,950,000 \\ \text{Depreciation} & & 1,850,000 \end{array}\) Assuming an occupancy rate of 85% to and 90% from Nyanya on the Nyanya-Wuse route, and 95% to and from on the Gwagwalada route. Assume also that the buses are operated 50 weeks a year. \(Required: \) Ascertain the more profitable route.

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Question 4 View Details

The following data are from the books of Bally Nigeria Limited for the month of July 2025. \( \begin{array}{lr} \textbf{Sales volume} & 225,000 \text{ units} \\ & \text{₦} \\ \text{Selling price per unit} & 200 \\ \text{Direct material per unit} & 50 \\ \text{Direct labour per unit} & 40 \\ \text{Variable production overhead} & 20 \\ \text{Fixed production overhead} & 2,750,000 \\ \text{Other fixed overhead expenses} & 1,200,000 \\ \text{Opening inventory} & 60,000 \text{ units} \\ \text{Closing inventory} & 50,000 \text{ units} \end{array} \) Fixed production overhead is absorbed based on 250,000 units production capacity. \(Required:\)

Requirements

(a)

Prepare Income Statement using: i. Marginal costing technique

(ii)

Absorption costing technique

(b)

Reconcile the income from the two results in (a) above

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Question 5 View Details

Rasmo Nig Ltd manufactures three products Jay, Kay, Lee and is able to sell all units produced. The following are the products’ data: \( \begin{array}{lrrr} & \text{Jay} & \text{Kay} & \text{Lee} \\ & \text{per unit} & \text{per unit} & \text{per unit} \\ & \text{₦} & \text{₦} & \text{₦} \\ \text{Selling price} & 250 & 230 & 300 \\ \text{Direct materials} & 80 & 24 & 32 \\ \text{Direct labour} & 76 & 108 & 128 \\ \\ \text{Variable overhead} & 27 & 45 & 57 \\ \text{Fixed overhead} & 25 & 25 & 30 \\ \text{Total costs} & 208 & 202 & 247 \\ \\ & \text{Jay (units)} & \text{Kay (units)} & \text{Lee (units)} \\ \text{Current production} & 7,000 & 9,000 & 8,000 \\ \text{Maximum production possible} & 10,000 & 13,000 & 11,000 \end{array} \) Labour hour rate is N4.00 per hour. However, as a result of labour unrest, labour has been in short supply. \(Required:\)

Requirements

(a)

Calculate the most profitable production mix.

(b)

\(\begin{array}{l} \textbf{Abala Manufacturing Limited produces a single product -- a special household item made up of the following cost data:} \\ \begin{array}{ll} \bullet \text{ Direct Materials:} & 15\text{ square metres @ ₦300 per square metre} \\ \bullet \text{ Direct Labour:} & 5\text{ hours @ ₦400 per hour} \\ \bullet \text{ Variable Overhead:} & \text{₦200 per hour} \\ \bullet \text{ Fixed Overhead:} & \text{₦100 per hour} \end{array} \\ \text{The standard selling price of the product is ₦10,000 per unit.} \\ \text{The monthly budgeted production and sales is 1,000 units.} \\ \ \textbf{Actual results for the month of April, 2026 are as follows:} \\ \text{Production of 1,400 units was sold @ ₦12,000 each.} \\ \text{Direct materials purchased and used in production was 22,000 square metres @ ₦400 per square metre.} \\ \text{Direct labour cost -- 6,800 hours @ ₦500 per hour.} \\ \text{Variable overheads -- ₦1,600,000} \\ \text{Fixed overheads -- ₦6,000,000} \\ \ \textbf{You are required to calculate:} \\ \begin{array}{l} \text{i. The standard cost of the product.} \\ \text{ii. The standard production cost at actual units.} \\ \text{iii. Direct Material Cost Variances (price and usage only).} \\ \text{iv. Direct Labour Cost Variances (rate and efficiency only).} \\ \text{v. Variable Overheads Variances (Expenditure and efficiency only).} \end{array} \end{array}\)

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ICAN 2026 Management Accounting | Mixed

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Detailed Essay Solution & Marking Scheme Available

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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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