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ICAN Performance Management 2025 past questions and answers

This 2025 ICAN Performance Management set has 20 practice questions. Try these 5 free sample questions, tap a question to reveal the answer and explanation. Then practise the whole 2025 set with instant marking.

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Sample ICAN Performance Management 2025 questions

1. A food processor uses activity-based costing. Its equipment set-up pool is N240,000 for 40 set-ups and its quality inspection pool is N180,000 for 60 inspections. Product K, made in batches of 3,000 units, uses 8 set-ups and 15 inspections. What overhead cost per unit should be assigned to Product K?
  1. N24
  2. N31
  3. N53
  4. N93

Answer: B. N31

Set-up cost assigned is N240,000 × 8/40 = N48,000; inspection cost is N180,000 × 15/60 = N45,000. N93,000 ÷ 3,000 units = N31 per unit; N93 is the total assigned overhead per batch, not the unit cost.

2. A fabrication workshop makes a one-off custom conveyor for a client and records materials, labour and overhead separately for that contract. Materials cost N180,000; the job uses 120 labour hours at N1,500 per hour; production overhead is absorbed at 80% of direct labour cost. What is the job's total production cost?
  1. N360,000
  2. N480,000
  3. N504,000
  4. N648,000

Answer: C. N504,000

Direct labour is 120 × N1,500 = N180,000 and absorbed overhead is 80% × N180,000 = N144,000. Total job cost is N180,000 + N180,000 + N144,000 = N504,000; N648,000 incorrectly applies overhead at 80% of a larger base.

3. A bottled-water producer sells each case for N1,000 and incurs variable cost of N600 per case. Monthly fixed costs are N1,200,000. Assuming a constant sales mix of this single product, how many cases must be sold each month to break even?
  1. 3,000 cases
  2. 2,000 cases
  3. 4,000 cases
  4. 6,000 cases

Answer: A. 3,000 cases

Contribution per case is N1,000 − N600 = N400. Break-even volume is N1,200,000 ÷ N400 = 3,000 cases; 2,000 cases would produce only N800,000 contribution.

4. A detergent plant budgets variable packaging cost of N350 per unit and monthly fixed production costs of N280,000. The original budget was for 1,000 units, but the production manager wants a flexed budget for 1,200 units. What total production cost should the flexed budget show?
  1. N630,000
  2. N680,000
  3. N420,000
  4. N700,000

Answer: D. N700,000

At 1,200 units, variable packaging is 1,200 × N350 = N420,000; adding fixed cost of N280,000 gives N700,000. N630,000 flexes the variable cost but omits the full fixed cost.

5. A chemical producer's standard material price is N500 per kilogram. For a batch, 2,100 kilograms were purchased at N520 per kilogram; use actual quantity purchased to calculate the material price variance. What is the variance?
  1. N40,000 adverse
  2. N42,000 favourable
  3. N20,000 adverse
  4. N42,000 adverse

Answer: D. N42,000 adverse

Material price variance is actual quantity purchased × (standard price − actual price): 2,100 × (N500 − N520) = N42,000 adverse. N40,000 results from using standard quantity for output instead of the stated quantity purchased.

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