Welcome to the series of ACCA exam questions, In this article, we are going to discuss MA1 multiple choice questions. So let’s start with our first question.

MA1 multiple choice questions

1. Which of the following items are most treated as an indirect cost by a furniture manufacturer?

  1. Fabric to cover the seats of the chair
  2. The metal used for the legs of the chair
  3. Staples to fit the fabric to the seat of a chair
  4. The wood used to make the frame of a chair

2. When we are preparing an operating statement based on the marginal costing principle, inventory valuation comprises which of the following costs?

  1. Direct labor and material only
  2. Prime cost plus production overhead
  3. Prime cost plus variable production overhead
  4. The total cost of sales

3. Which of the following methods of remuneration is not an incentive-based scheme?

  1. Straight piecework
  2. High day rate
  3. Group bonus
  4. Differential piecework

4. Which of the following relates to the cost of replacing labor due to high employee turnover?

  1. Improving working conditions
  2. Suffering the learning curve effect
  3. Provisions of pension
  4. Provision of welfare services

Material and labor costing

5. A job requires 2400 actual labor hours for completion and it is anticipated that there will be 20% idle time.

What is the budgeted labor cost for the job? If the wages rate is $10 per hour.

  1. $19200
  2. $24000
  3. $28800
  4. $30000

6. Which of the following would be classified as direct cost?

  1. HR in a company service cars
  2. Bricklayer in a construction company
  3. GM in a DIY shop
  4. Maintenance manager in a company producing cameras

7. Which of the following is usually classed as a step cost?

  1. Supervisor’s wages
  2. Raw material
  3. Rates
  4. Telephone

8. Which of the following would be most likely to provide information on contracted rates of pay?

  1. A trade union
  2. Production manager
  3. HR
  4. Study manager

9. A method of dealing with overhead invoices spreading the common cost over cost centers on the basis of benefits received?

  1. Overhead absorption
  2. Overhead apportionment
  3. Allocations
  4. Overhead analysis

10. Production supervisory salaries are classed as production overhead.

  1. The number of units produces
  2. Machine hour
  3. Direct labor hours
  4. Number of machines


  1. (3)
  2. (3)
  3. (2)
  4. (2)
  5. (4)
  6. (2)
  7. (1)
  8. (3)
  9. (2)
  10. (3)


Which information system is used to manage manufacturing resources?

MRP is the system that is used to manage the information of manufacturing resources the full form of MRP is Manufacturing Resource Planning

Which is not a characteristic of management accounting information?

  1. Future planning for business
  2. Variance analysis
  3. Planning
  4. Making article of association

The right answer is the 4 because this is the work of the owner of the business, not the management accounting.

Which of the below represents the definition of information management?

  1. Information that is accurate, error-free, complete, user-relevant, and neutral
  2. Information that is cost-beneficial but false, complete, and free from error
  3. Information that is relevant to user intent and managers only
  4. Information that is cost-effective, helps a business to bring the customer and make a profit over the investment.

The correct answer is option 1.

What is marketing information management?

Marketing information management is a system that helps to know the market status, it helps a business to keep eye on the changing trend of the market. By using marketing information management a business can make stable its existence in the market and changing trend knowledge can help a business to avoid big losses. Marketing information management plays a significant role in a business by helping it in various areas of the business.

ACCA exam practice for MA1 and FA1,

FA1 exam questions

Source documents and coding

FIA exam questions

Double-entry exam questions

Production Overheads

Business transaction and documentation