PassSpark

ICAN Management Accounting 2022 past questions and answers

This 2022 ICAN Management Accounting set has 20 practice questions. Try these 5 free sample questions, tap a question to reveal the answer and explanation. Then practise the whole 2022 set with instant marking.

Practise the full 2022 setTimed exam mode

Sample ICAN Management Accounting 2022 questions

1. Which item is best classified as an indirect production cost in a furniture factory?
  1. Timber incorporated in a specific desk
  2. Salary of the factory supervisor
  3. Assembler's wages traced to a specific desk
  4. Delivery charge for a completed desk sent to a customer

Answer: B. Salary of the factory supervisor

The supervisor supports production generally, so the salary cannot be traced economically to one desk and is an indirect production cost. Timber and traceable assembler wages are direct costs; customer delivery is a selling or distribution cost.

2. A workshop's maintenance bill is ₦20,000 per month plus ₦3,000 for each machine-hour. Within the relevant range, how should this cost be described?
  1. A fixed cost
  2. A variable cost
  3. A stepped fixed cost
  4. A semi-variable cost

Answer: D. A semi-variable cost

The ₦20,000 retainer is fixed while the charge per machine-hour varies with activity, making the total a semi-variable (mixed) cost. A purely fixed or variable classification would omit one part of the bill.

3. Under absorption costing, which production cost is included in the cost of finished goods inventory?
  1. A share of fixed production overhead
  2. The whole of the period's selling overhead
  3. The whole of the period's administration overhead
  4. Only variable production overhead, never fixed production overhead

Answer: A. A share of fixed production overhead

Absorption costing includes both variable and fixed production overhead in product cost, so inventory carries an allocated share of fixed production overhead. Selling and administration overheads are period costs, not production inventory costs.

4. When preparing a flexible budget for a different activity level within the relevant range, which treatment is appropriate?
  1. Keep all costs unchanged
  2. Change fixed costs in direct proportion to output
  3. Adjust variable costs for activity and retain fixed costs at the budget amount
  4. Replace budgeted costs with actual costs

Answer: C. Adjust variable costs for activity and retain fixed costs at the budget amount

A flexible budget restates variable costs for the actual activity while fixed costs remain constant within the relevant range. It is not an actual-cost report and does not scale fixed costs with output.

5. A product sells for ₦60 per unit and has variable cost of ₦36 per unit. If fixed costs are ₦144,000, what is the break-even output?
  1. 4,000 units
  2. 6,000 units
  3. 8,000 units
  4. 10,000 units

Answer: B. 6,000 units

Contribution per unit is ₦60 − ₦36 = ₦24. Break-even output is ₦144,000 ÷ ₦24 = 6,000 units; 4,000 units would cover only ₦96,000 of fixed costs.

More ICAN Management Accounting years

2026202520242023

All ICAN Management Accounting years · ICAN subjects

PassSpark questions are original practice questions written to each exam's syllabus and format, in the style of past questions. They are not official past papers and are not affiliated with JAMB, WAEC, NECO, any university or any exam body.