100+ Free ICAB CL Management Information Practice Questions

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2026 Statistics

Key Facts: ICAB CL Management Information Exam

2 hours

Official exam duration

ICAB Syllabus 2023 Management Information module

100 marks

Paper total marks

ICAB Syllabus 2023

Tk. 1,500

Typical CL fee per 100-mark subject

ICAB application-fees page

25%

Each MI syllabus area weighting

ICAB Syllabus 2023 specification grid

ICAB CL Management Information is a 100-mark, 2-hour Certificate Level paper (exam fee commonly Tk. 1,500). Syllabus 2023 weights: Costing 25%, Budgeting 25%, Performance 25%, Decisions 25%. This free set offers 100 practice MCQs mapped to those areas.

Sample ICAB CL Management Information Practice Questions

Try these sample questions to test your ICAB CL Management Information exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1A leather goods factory in Dhaka incurs a monthly salary cost of BDT 45,000 for a supervisor who oversees multiple production lines. How should this cost be classified?

A.Fixed direct cost

B.Fixed indirect cost

C.Variable direct cost

D.Semi-variable direct cost

Explanation: The supervisor's salary does not change with short-term fluctuations in production volume, making it a fixed cost. Since the supervisor oversees multiple production lines, the cost cannot be traced directly to a single unit of product, making it an indirect cost (overhead).

2Dhaka Traders had an opening inventory of 100 units valued at BDT 50 each on 1st July. On 10th July, they purchased 200 units at BDT 55 each. On 15th July, they sold 150 units. Under the periodic weighted average cost (AVCO) method, what is the cost of the units sold?

A.BDT 7,500

B.BDT 7,750

C.BDT 8,000

D.BDT 8,250

Explanation: Under the periodic AVCO method, the weighted average cost is calculated as: Total Cost / Total Units = ((100 * BDT 50) + (200 * BDT 55)) / (100 + 200) = (BDT 5,000 + BDT 11,000) / 300 = BDT 16,000 / 300 = BDT 53.33 per unit. The cost of the 150 units sold is 150 * BDT 53.33 = BDT 8,000.

3Service Department X has total overheads of BDT 100,000 and serves Production Departments A (60%) and B (40%). Service Department Y has total overheads of BDT 80,000 and serves Production Departments A (50%) and B (50%). Under the direct reallocation method, what is the total service department cost allocated to Production Department A?

A.BDT 100,000

B.BDT 90,000

C.BDT 80,000

D.BDT 110,000

Explanation: Under the direct reallocation method, service department costs are allocated directly to production departments based on their service usage: Department A receives 60% of X (0.60 * BDT 100,000 = BDT 60,000) and 50% of Y (0.50 * BDT 80,000 = BDT 40,000). Total allocation to Department A = BDT 60,000 + BDT 40,000 = BDT 100,000.

4An electronics assembly unit in Chittagong wants to price a component. The total manufacturing cost per unit is BDT 1,200. If the firm requires a markup of 25% on cost, what should the selling price be?

A.BDT 1,440

B.BDT 1,500

C.BDT 1,600

D.BDT 1,650

Explanation: A markup of 25% on cost is added to the cost price: Selling Price = Cost * (1 + Markup Rate) = BDT 1,200 * (1 + 0.25) = BDT 1,200 * 1.25 = BDT 1,500.

5A retail outlet sells a premium leather jacket for BDT 2,000. If the shop achieves a gross profit margin of 30% on the selling price, what is the cost of the jacket?

A.BDT 1,400

B.BDT 1,540

C.BDT 1,700

D.BDT 1,300

Explanation: A profit margin of 30% on the selling price means that profit is 30% of the price, and cost represents 70% of the selling price: Cost = Selling Price * (1 - Margin) = BDT 2,000 * (1 - 0.30) = BDT 2,000 * 0.70 = BDT 1,400.

6Job 404 requires BDT 5,000 in direct materials and 10 hours of direct labor at BDT 150 per hour. Production overheads are absorbed at a rate of BDT 100 per direct labor hour. What is the total factory cost of Job 404?

A.BDT 6,500

B.BDT 7,500

C.BDT 8,000

D.BDT 9,000

Explanation: Total factory cost consists of: Direct Materials (BDT 5,000) + Direct Labor (10 hours * BDT 150 = BDT 1,500) + Absorbed Overheads (10 hours * BDT 100 = BDT 1,000). Total factory cost = BDT 5,000 + BDT 1,500 + BDT 1,000 = BDT 7,500.

7A product has a selling price of BDT 80, variable cost per unit of BDT 45, and budgeted fixed overheads of BDT 20 per unit. What is the contribution per unit?

A.BDT 35

B.BDT 15

C.BDT 55

D.BDT 25

Explanation: Contribution per unit is defined as: Selling Price - Variable Cost per Unit. Therefore: BDT 80 - BDT 45 = BDT 35. Fixed overheads are ignored in the calculation of contribution.

8In process costing, how is the scrap value of a normal loss typically accounted for?

A.Deducted from the total process costs before calculating the unit cost of good output

B.Debited directly to the costing profit and loss account as an expense

C.Added to the value of the abnormal loss account

D.Credited to the raw materials inventory account to reduce unit price

Explanation: The scrap value of a normal loss is deducted from the total process costs to determine the net cost of the process. This net cost is then divided by the expected output to find the cost per equivalent unit.

9A factory in Gazipur budgeted fixed overheads of BDT 450,000 based on 15,000 machine hours. Actual overheads incurred were BDT 460,000 and actual machine hours worked were 16,000 hours. What was the over- or under-absorption of overheads?

A.BDT 10,000 under-absorbed

B.BDT 10,000 over-absorbed

C.BDT 20,000 under-absorbed

D.BDT 20,000 over-absorbed

Explanation: The predetermined overhead absorption rate (OAR) is BDT 450,000 / 15,000 hours = BDT 30 per machine hour. Absorbed overheads = Actual hours * OAR = 16,000 * BDT 30 = BDT 480,000. Over/Under-absorption = Absorbed Overheads - Actual Overheads = BDT 480,000 - BDT 460,000 = BDT 20,000 (over-absorbed, because absorbed overhead exceeds actual overhead).

10A business produced 12,000 units and sold 10,000 units during a period. The standard fixed overhead absorption rate is BDT 8 per unit. The marginal costing profit was BDT 120,000. What is the absorption costing profit?

A.BDT 104,000

B.BDT 120,000

C.BDT 136,000

D.BDT 152,000

Explanation: Absorption Costing Profit = Marginal Costing Profit + (Change in Inventory * Fixed Overhead Rate). Inventory increased by: Production (12,000) - Sales (10,000) = 2,000 units. Thus, Absorption Costing Profit = BDT 120,000 + (2,000 * BDT 8) = BDT 120,000 + BDT 16,000 = BDT 136,000.

About the ICAB CL Management Information Exam

ICAB Certificate Level Management Information builds competency in management accounting calculations, including absorption vs. marginal costing, flexible budgeting, variance analysis, relevant costing, and CVP analysis. Assessment is a 2-hour, 100-mark paper delivered in the Certificate Level objective/MCQ format used in the current curriculum pathway.

Assessment

ICAB Syllabus 2023 Certificate Level Management Information (100 marks): Costing and pricing (25%), Budgeting and forecasting (25%), Performance management (25%), and Management decision making (25%).

Time Limit

2.0 hours (120 minutes)

Passing Score

Pass/fail per ICAB examination regulations (fixed public % not confirmed in Syllabus-2023 PDF—verify current rules)

Exam Fee

Tk. 1,500 per 100-mark Certificate Level subject (ICAB students' blog fee schedule; confirm sitting) (Institute of Chartered Accountants of Bangladesh (ICAB))

ICAB CL Management Information Exam Content Outline

25%

Costing and pricing

Overhead absorption, marginal vs. absorption costing, pricing strategies, and margin/markup math.

25%

Budgeting and forecasting

Cash budgets, flexible budgets, and zero-based budgeting.

25%

Performance management

Variance analysis for direct material, direct labor, and overheads; Balanced Scorecard.

25%

Management decision making

Relevant costs, break-even point, margin of safety, limiting factor analysis, and make-or-buy decisions.

How to Pass the ICAB CL Management Information Exam

What You Need to Know

Passing score: Pass/fail per ICAB examination regulations (fixed public % not confirmed in Syllabus-2023 PDF—verify current rules)
Assessment: ICAB Syllabus 2023 Certificate Level Management Information (100 marks): Costing and pricing (25%), Budgeting and forecasting (25%), Performance management (25%), and Management decision making (25%).
Time limit: 2.0 hours (120 minutes)
Exam fee: Tk. 1,500 per 100-mark Certificate Level subject (ICAB students' blog fee schedule; confirm sitting)

Keys to Passing

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

ICAB CL Management Information Study Tips from Top Performers

1Understand why marginal costing profit differs from absorption costing profit due to inventory changes.

2Memorise formulas for flexible budget adjustments and variance analysis (price, usage, rate, efficiency).

3Pracitse CVP analysis, including multi-product break-even calculations, margin of safety, and contribution-to-sales ratios.

4Understand relevant cost rules: ignore sunk costs, include opportunity costs, and evaluate incremental cash flows.

Frequently Asked Questions

What is ICAB Certificate Level Management Information?

It is the Management Information module of the Institute of Chartered Accountants of Bangladesh CA Certificate Level under Syllabus 2023. It tests costing, pricing, budgets, variances, and relevant costing decision analysis.

How long is the Management Information exam?

ICAB Syllabus 2023 states the Management Information module is assessed by a 2-hour examination (100 marks).

What does the syllabus weighting look like?

Indicative weights are Costing and pricing 25%, Budgeting and forecasting 25%, Performance management 25%, and Management decision making 25%.

How much is the exam fee?

ICAB application-fees page lists Certificate Level examination fees of Tk. 1,500 per 100-mark subject. Confirm the fee on your sitting notice or exam.icab.org.bd.

Is the paper MCQ?

Under the current Certificate Level pathway, Management Information is assessed in objective/MCQ style. Always confirm format on your official sitting circular.

What is the pass mark?

A fixed public percentage pass mark is not stated in the ICAB Syllabus 2023 PDF; ICAB publishes pass/fail results per sitting. Confirm current pass rules on icab.org.bd.