ACCA F1 MTQs

Qu1. The diagram below represents the conventional micro economic model, demonstrating
equilibrium under perfect competition.

Task 1
Which schedule does function A on the diagram represent?
A. Marginal cost
B. Average cost
C. Marginal revenue
D. Average revenue
Task 2
Which schedule does function B on the diagram represent?
A. Average cost
B. Average revenue
C. Marginal cost
D. Marginal revenue
Task 3
Which two schedules could function C on the diagram represent?
A. Average cost
B. Average revenue
C. Marginal cost
D. Marginal revenue
Andrew is involved in reviewing the performance of the company’s product portfolio to ensure
overall corporate targets for market share and profitability are met. He is also responsible for
recommending the discontinuation of any unprofitable products and for initiating new product
development opportunities. To achieve this, Andrew must his market research and relevant
sales and cost data from a number of divisional sales managers in a wage range of geographical
markets before he can analyse them.
Ben analyses the standard cost variances form the departmental budgets and has produced an
exact causes of each of these variances with his manager to agree with him a set of
departmental organizations for the next budgetary period.
Camilla has developed a vision for the general direction of the business over the next three or
four years. She has to think about “Where are we now… where do we want to be” and put
forward a set of formal proposals. Camilla must provide this information to all board members
for discussion at the next directors meeting, to which she is invited.
Davina works as a sales ledger and credit control officer. She is responsible for posting sales
invoices into the personal accounts of customers and reconciling the individual customer
account balances with the total from the receivables control account. She is also responsible for
credit control. As part of the latter role, Davina must contact particular customers to urgently
establish when they settle their accounts and to warn them of pending legal action if they do
not provide a satisfactory response.
Task 1
Use Anthony’s hierarchy of management activity to select the type of management activity
carried out by each person.
Andrew
Ben
Camilla
Davina
A. Strategic
B. Tactical
C. Operational
Task 2
In the situation described, each person will need to communicate with others to carry out
their objectives. For each person below, select the type of communication they would need to
use to achieve their objective.
Andrew
Ben
Camilla
Davina
A. Email message
B. Telephone call
C. Committee paper
D. Face-to-face meeting
E. Spreadsheets worksheets
Qu3. Different organizations have different types of organization structure.
Task1
The following diagrams represent different types of organization structure. Select the correct
description for each diagram.
Drawing 1

Drawing 2
Drawing 3

Drawing 4

A. Matrix organization
B. Functional organization
C. Divisional organization
D. Shamrock organization
Task2
Which FOUR of the following are ADVANTAGES which can be attributed to a functional
structure?
A. Expertise is pooled
B. Duplication is avoided
C. Recruitment of specialists is facilitated
D. Co-ordination is improved throughout the business
E. Well-suited to centralized business
F. Breaks down vertical barriers
G. Focuses particularly on customers and outputs
H. Facilitates greater flexibility and faster decision-making
Qu4. Mark and Abdul work as auditors at ABC, a limited liability manufacturing company. Mark
is the company’s external auditor and Abdul is an internal auditor.
Task1
Select the individual to whom each statement relates.
This person is appointed by the shareholders and is not an employee of ABC Company.
This person works towards objectives set by management of ABC Company.
Task2
Would each of the following tasks be the responsibility of Mark, Abdul, both of them or
neither of them?

 Reporting to management on the effectiveness of internal controls

 Reviewing the effectiveness of the production department
 Reviewing the implementation of corporate objectives
 Expressing an opinion as to whether or not the financial statements present a true and
fair view.
 Reporting whether or not financial statements are prepared in accordance with
company law.
 Performing a one-off investigation into suspected fraud.
Qu5. Selecting the correct communication method is important to ensure that the
communication objective is achieved. Examples of different types of communication methods
include: conferences, face-to-face meetings, reports and notice boards.
Task1
Select the BEST form of communication method for each of the following objectives.

 Explain complex facts and arguments

 Reach large audience over a wide area
 Generate new ideas
 Transmit information cheaply to a large number of people
Task 2
For each of the following situations the general flaw in the communication process.
A. Overload
B. Misunderstanding
C. Distortion
D. Non-verbal signs
E. Selective hearing
John arrives late to the office. While booting up his computer he remembers that he ought to
have bought his lunch. As he contemplates, his telephone rings and a colleague asks him for
some information. While he is still on the phone another colleague sends him a meeting invite
by email. The meeting was scheduled at short notice just before lunch. When john is out buying
his lunch he remembers that he has missed his meeting.

Gareth reads an email containing comprehensive technical information from IT on how to

convene a virtual conference call. When trying to set up the video link he is unable to connect
to his virtual audience.

Beverly, the team leader, gives a briefing to her staff on the re-organization of the department.
She reassures staff that their posts and working conditions are likely to remain unchanged.
However, she acts nervously and does not make proper eye contact with any of her team while
saying this.

On the notice board, a departmental meeting is announced for Friday at 9.00 am in the meeting
room 1. This is an important meeting about a staff training programme, which all staff are
required to attend. On the day of the meeting half the staff arrive at meeting room 1 in the
main building, which is being used for interviews. The remaining staff arrives at meeting room 1
in the staff training department where the departmental meeting is being held.

Qu6. Business ethics is increasingly important in the workspace. It governs attitude and
behavior at work. It can be defined in a number of ways. However, to be appropriate, the
definition should cover certain key aspects. Business ethics can also help to promote particular
organizational values which a business should try and uphold.
Task1
Below are four descriptions of business ethics. Which one BEST describes what business
ethics is concerned with?

 An ethical framework for decision-making which should apply to the managers of a

business and their conduct, particularly in relation to the recruitment, selection and
promotion of staff.
 A form of applied ethics examining moral principles applying to certain aspects of
business conduct and relevant to individuals and teams who have direct contact with
external business stakeholders.
  A form of applied ethics that examines ethical principles and moral or ethical problems
applying aspects of business conduct and relevant to individuals and business
organizations as a whole.
 A form of pure ethics that compares ethical values and prescribes a universal moral
approach for business and individuals to follow in any given circumstances or situation.

Task 2
The following situations describe behavior in the workplace. They all demonstrate
organizational values which are consistent with ethical business behavior.
For each situation described, select the organizational value that is being demonstrated.
A. Trust
B. Openness
C. Respect
D. Accountability
The Managing director of the company invites a range of staff form all levels of the organization
to the end-of-year function. He thanks everyone for their efforts, naming particular individuals
and their specific contributions to the organization.

Your team failed to achieve its targets last month. Accepting the failure, you recommend to your
manager how your team plans to improve performance to an acceptance level.

At your appraisal you tell your manager about certain motivational problems, which are
affecting your work. You also describe how you feel under-utilized as a team member and why.

You have asked to work from home. Your manager agrees suggesting you should prioritize you
own work for that day as he is taking the day off as annual leave.
 Answers
MTQ 1
Task 1
Marginal cost
Task 2
Average cost
Task 3
Average revenue
Marginal revenue
MTQ 2
Task1
Andrew- strategic
Ben- tactical
Camilla – strategic
Davina – operational
Task2
Andrew- spreadsheet
Ben – face-to-face meeting
Camilla – committee paper
Davina – telephone call
MTQ 3
Task1
Shamrock organization
Divisional organization
Matrix organization
Functional organization
Task2
 Expertise is pooled
Duplication is avoided
Recruitment of specialists is facilitated
Well suited to centralized business
MTQ 4
Task 1
Mark
Abdul
Task2
Mark
Abdul
Mark
Abdul
Abdul
Abdul
MTQ 5
Task1
Face-to-face meeting
Conference
Report
Notice board
Task2
Overload
Misunderstanding
Non-verbal signs
Distortion
MTQ 6
Task1
A form of applied ethics that examines ethical principles and moral or ethical problems
applying to all aspects of business conduct and relevant to individuals and business
organizations as a whole.
Task2
Openness
Trust
Accountability
Respect