ICAN Management Information 2020
Past Questions
28+ verified 2020 ICAN Management Information practice questions with Worked answers.
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Alhaji Musa Farms Limited incurs the following annual costs: farm manager's salary ₦3,600,000; seeds and fertilisers ₦1,200,000; depreciation of irrigation equipment ₦480,000; casual labour hired per …
Dangote Cement Plc classifies the salary of its Head of Internal Audit as a cost for management information purposes. Which classification correctly describes this cost?
Ikeja Electronics Limited applies regression analysis to estimate its total overhead costs. The regression equation derived is $y = 4{,}500{,}000 + 620x$, where $y$ is total monthly overhead cost in N…
Port Harcourt Refineries Ltd uses FIFO for material issues. Opening balance 1 Apr: 200 units @ ₦500. Received 5 Apr: 300 units @ ₦600. Issued 10 Apr: 350 units. Received 20 Apr: 400 units @ ₦650. Issu…
Abuja Engineering Works operates a job costing system. Job No. AEW-047 has the following costs: Direct materials ₦245,000; Direct labour 120 hours at ₦650/hr; Variable overhead ₦180 per direct labour …
Under IAS 2 (Inventories), as adopted by the Financial Reporting Council of Nigeria (FRCN), which of the following costs should be EXCLUDED from the cost of inventories of a manufacturing company?
Kano Components Limited reports the following for March 2024: Opening inventory 2,000 units, Closing inventory 5,000 units, Fixed production overhead ₦6,000,000, and budgeted/actual production 30,000 …
Under marginal costing, which of the following costs would be included in the valuation of closing inventory of finished goods for a manufacturing company filing returns under the Companies Income Tax…
Which of the following statements correctly describes the treatment of fixed production overheads under IAS 2 (Inventories) as adopted in Nigeria through the Financial Reporting Council of Nigeria (FR…
Lagos Breweries Plc operates three product lines: Alpha, Beta, and Gamma with contribution margins of ₦200, ₦350, and ₦150 per unit respectively. Fixed costs directly attributable to each line are ₦1,…
Abuja Plastics Limited budgeted to produce 40,000 units in Q1 2024 but actually produced 44,000 units. Budgeted fixed overhead was ₦8,000,000 and actual fixed overhead incurred was ₦8,500,000. What is…
In preparing the production budget for Ibadan Foods Limited, the following data is available for April 2024: Budgeted sales = 25,000 units; Opening finished goods inventory = 4,000 units; Desired clos…
Enugu Steel Works Plc is preparing its cash budget for May 2024. Credit sales in March, April and May are ₦18,000,000, ₦22,000,000 and ₦26,000,000 respectively. The company's collection pattern is: 40…
Ibadan Manufacturing Co. operates a standard marginal costing system. Standard variable cost per unit is ₦1,200 (materials ₦700, labour ₦300, variable overhead ₦200). Budgeted production and sales wer…
Abuja Textiles Plc currently earns a profit of ₦2,800,000. Its P/V ratio is 35% and fixed costs are ₦4,200,000. If the company wishes to increase profit by 50%, by how much must sales revenue increase…
Abuja Logistics Limited is evaluating a new fleet management system costing ₦85,000,000. The system is expected to reduce annual operating costs by ₦22,000,000 and generate additional revenue of ₦8,00…
Under the Financial Reporting Council of Nigeria (FRCN) Act 2011, which body is primarily responsible for setting financial reporting standards applicable to public interest entities in Nigeria?
Zenith Manufacturing Limited recorded the following for the year ended 31 December 2023: Actual output = 4,800 units; Budgeted output = 6,000 units; Actual hours worked = 9,200 hours; Standard hours p…
Eko Retail Stores Plc reported the following results for Q3 2023: Net profit before interest and tax = ₦18,750,000; Total assets = ₦125,000,000; Current liabilities = ₦25,000,000. What is the company'…
Which of the following statements CORRECTLY distinguishes between efficiency and effectiveness in performance measurement?
QUESTION 3 Kaduna Textile Mills Plc (KTM) is a publicly listed company that manufactures high-quality woven fabrics for both domestic and export markets. The company operates three production departm…
Eko Plastics Limited, a manufacturing company based in Lagos, produces a single product called 'PlastoPak'. The following information relates to the company's operations for the month of October 2024:…
Abuja Furniture Works Limited manufactures a premium office chair branded 'ExecuSeat'. The company operates a standard costing system and uses absorption costing for its financial statements. However,…
QUESTION 2 Kano Textile Manufacturing Plc (KTM) is a publicly listed company on the Nigerian Exchange Group (NGX). The company produces and exports woven fabrics and garments to West African markets.…
QUESTION 3 The Federal Ministry of Finance (FMF) in Abuja has recently initiated a data-driven governance reform programme aimed at improving the quality of fiscal reporting across Ministries, Depart…
Kano Processing Limited operates a production system where total overhead cost is semi-variable. The company recorded the following activity levels and total overhead costs for two recent periods: - …
Zaria Consumer Goods Limited (ZCGL) manufactures a single standard household cleaning product, 'CleanMax', at its factory in Kaduna State. The management accountant of ZCGL is preparing the monthly pe…
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA SKILLS LEVEL EXAMINATION - MAY 2024 MANAGEMENT INFORMATION QUESTION 1 Eko Superstores Limited is a rapidly growing chain of retail supermarkets head…