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ICAN Performance Management 2026 past questions and answers

This 2026 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 2026 set with instant marking.

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Sample ICAN Performance Management 2026 questions

1. A manufacturer uses activity-based costing. The annual setup pool is ₦150,000 for 75 setups, and the inspection pool is ₦96,000 for 480 inspection hours. Product K uses 8 setups and 30 inspection hours. How much of these two overhead pools should be assigned to Product K?
  1. ₦19,000
  2. ₦22,000
  3. ₦24,000
  4. ₦26,000

Answer: B. ₦22,000

The setup rate is ₦150,000 ÷ 75 = ₦2,000 per setup and the inspection rate is ₦96,000 ÷ 480 = ₦200 per hour. Product K receives 8 × ₦2,000 + 30 × ₦200 = ₦22,000; the common error is to allocate the full pool rather than the product's driver usage.

2. A distributor is preparing a forecast for next month using a weighted moving average of monthly unit sales. The latest three months recorded 800, 900 and 1,000 units, respectively, and the weights for the oldest, middle and latest months are 0.2, 0.3 and 0.5. What is the forecast?
  1. 880 units
  2. 900 units
  3. 920 units
  4. 930 units

Answer: D. 930 units

Apply each weight to its corresponding month: (800 × 0.2) + (900 × 0.3) + (1,000 × 0.5) = 160 + 270 + 500 = 930 units. The most recent month has the greatest weight, so the simple average is not appropriate.

3. A factory purchased 3,000 kg of a material for ₦19,200. The standard price is ₦6 per kg. Using the quantity purchased to calculate the material price variance, what is the variance?
  1. ₦1,200 favourable
  2. ₦800 adverse
  3. ₦1,200 adverse
  4. ₦800 favourable

Answer: C. ₦1,200 adverse

The actual price is ₦19,200 ÷ 3,000 = ₦6.40 per kg. Price variance = 3,000 × (₦6.00 − ₦6.40) = ₦1,200 adverse; using standard quantity or reversing the price difference gives a wrong result.

4. A company has spare capacity and receives a one-off order for 300 units. Each unit has a variable manufacturing cost of ₦24, and the special packaging required costs ₦3 per unit. A one-time setup charge of ₦900 will be incurred only if the order is accepted. Fixed costs will otherwise be unchanged. What is the minimum price per unit that covers the relevant costs?
  1. ₦30
  2. ₦27
  3. ₦33
  4. ₦36

Answer: A. ₦30

Relevant order cost is (300 × ₦24) + (300 × ₦3) + ₦900 = ₦9,000, or ₦30 per unit. The setup charge adds ₦3 per unit; ignoring it understates the minimum price, while allocating unchanged fixed costs would overstate it.

5. A service company is selecting a measure for the learning and growth perspective of its balanced scorecard. Which measure most directly assesses whether employees are developing capabilities needed for a new digital service?
  1. Production defect rate
  2. Percentage of employees with the required digital certification
  3. Customer retention rate
  4. Return on capital employed

Answer: B. Percentage of employees with the required digital certification

The percentage of employees with the required certification directly measures workforce capability development, a learning and growth concern. Defect rate is an internal-process measure, retention is customer-focused, and return on capital employed is financial.

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