ICAN Management Information 2022
Past Questions

Abuja Bottling Company uses the high-low method to separate fixed and variable elements from its maintenance costs. The highest activity level was 80,000 bottles at a cost of ₦6,400,000, and the lowes…

Zenith Manufacturing Plc produces automotive parts. At an output of 10,000 units, total costs are ₦25,000,000, of which fixed costs are ₦10,000,000. What is the total cost at an output of 14,000 units…

For the purpose of a make-or-buy decision at Kaduna Steel Works Limited, which cost classification is MOST relevant to management?

Abuja Engineering Works operates a job costing system. The following data relate to Job No. AEW-047: Direct materials ₦245,000; Direct labour 120 hours at ₦650 per hour; Variable overhead absorbed at …

Adeola Manufacturing Company uses the weighted average method of inventory valuation. At the beginning of March 2024, it held 400 units of raw material at ₦1,200 per unit. During March, it purchased 6…

Enugu Plastics Limited sells its product at ₦850 per unit. Variable production cost is ₦320 per unit, variable selling cost is ₦80 per unit, fixed production overhead is ₦2,250,000 per annum, and fixe…

Kaduna Steel Products Limited manufactures a single product with the following annual data: Selling price ₦1,200 per unit; Variable cost ₦720 per unit; Fixed costs ₦14,400,000. The company currently s…

Kano Textiles Plc uses batch costing. A batch of 2,000 metres of fabric incurs total production costs of ₦1,640,000. The batch is sold at a mark-up of 25% on cost. What is the selling price per metre?

Enugu Chemicals Ltd operates a continuous process. In April, 10,000 kg of raw material costing ₦2,500,000 were input. Labour and overhead costs totalled ₦1,200,000. Normal loss is 8% of input, with sc…

A manufacturing company in Lagos sets a standard material cost of ₦450 per kg for Product X, with a standard usage of 4 kg per unit. During March 2024, the company produced 1,200 units, purchased 5,10…

Port Harcourt Refineries Plc uses a standard costing system. A favourable Material Price Variance combined with an adverse Material Usage Variance MOST LIKELY indicates which of the following situatio…

Kano Steel Plc, a listed company, uses a cloud-based accounting system to prepare its financial statements in compliance with IFRS as adopted in Nigeria. The external auditors, applying ISA 315 (Revis…

Zenith Foods Limited prepared a management report showing total revenue of ₦85,000,000 and a cost of sales of ₦52,000,000 for the quarter ended 31 March 2024. If operating expenses amounted to ₦18,500…

Under the Companies and Allied Matters Act (CAMA) 2020, a public company in Nigeria is required to lay its audited financial statements before members at the Annual General Meeting within how many mon…

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…

Lagos Textile Mills Plc had the following data for October 2023: Budgeted fixed overhead = ₦12,000,000; Budgeted output = 4,000 units; Actual output = 3,600 units; Actual fixed overhead = ₦12,500,000.…

QUESTION 3 Petrokem Chemicals Nigeria Limited operates a chemical processing plant in Port Harcourt, Rivers State. The company manufactures a liquid industrial solvent through two sequential processe…

Abuja Garments Limited (AGL) manufactures school uniforms for government secondary schools in the Federal Capital Territory. The company uses a standard marginal costing system. The standard cost card…

Eko Retail Solutions Limited is a fast-growing supermarket chain headquartered in Lagos with branches in Abuja, Port Harcourt, and Kano. The Managing Director, Alhaji Musa Bello, recently attended a b…

QUESTION 1 Adekunle & Sons Limited is a Lagos-based fast-moving consumer goods (FMCG) company that distributes beverages, confectioneries, and household products across six geopolitical zones in Nige…