ICAEW Certificate in Finance Business and Accounting Practice Test

Trent Cycles absorbs production overhead using machine hours. Budgeted overhead is GBP 220,000 and budgeted machine hours are 17500. A custom job used 46 machine hours and direct costs have already been recorded. How much production overhead should be absorbed into the job? The internal case file is dated 24 August 2025, and the reviewer has included it as context rather than as a separate calculation input.

Fen Works sells one product for GBP 84 per unit. Variable cost is GBP 47 per unit and monthly fixed costs are GBP 28,000. The sales team is planning a promotion and wants the accountant to identify the volume needed to avoid a loss. What is the monthly break-even volume, rounded to the nearest unit? The internal case file is dated 4 October 2025, and the reviewer has included it as context rather than as a separate calculation input.

In 2024/25, Priya has adjusted net income of GBP 133,000 and no reliefs other than the personal allowance. A colleague calculates tax using the full personal allowance because income is below the additional-rate threshold. What personal allowance should be used? The internal case file is dated 14 April 2025, and the reviewer has included it as context rather than as a separate calculation input.

In 2024/25, Sam sells quoted shares and realises a chargeable gain of GBP 54,000 after allowable costs. No capital losses are available and the annual exempt amount has not been used. What gain is chargeable before applying the CGT rate bands? The internal case file is dated 18 January 2025, and the reviewer has included it as context rather than as a separate calculation input.

A sales agent for Silverline Tools signs a supply contract after being told internally not to offer credit terms above 30 days. The customer had previously seen the agent negotiate contracts and was not told about the new restriction. Which conclusion is most likely? The internal case file is dated 25 December 2025, and the reviewer has included it as context rather than as a separate calculation input.