100+ Free ICAEW MI Practice Questions
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Key Facts: ICAEW MI Exam
33 questions
32 objective questions plus one scenario-based question on the MI exam
ICAEW - Introduction to the Management Information exam
80% / 20%
Objective questions carry about 80% of marks and the scenario about 20%
ICAEW - Introduction to the Management Information exam
1.5 hours
Time allowed to complete the Management Information exam
ICAEW - Introduction to the Management Information exam
55%
Pass mark for ICAEW Certificate Level exams including Management Information
ICAEW - Certificate Level exams
4 areas
Costing and pricing, budgeting and forecasting, performance management and decision making
ICAEW - Management Information module
Computer-based
MI is sat on computer at a test centre or by remote invigilation
ICAEW - Certificate Level exams
Certificate Level
MI is a Certificate Level module shared by the ACA and ICAEW CFAB
ICAEW - Management Information module
100
Free original practice questions in this OpenExamPrep bank
OpenExamPrep
ICAEW ACA Management Information is a Certificate Level (and ICAEW CFAB) module covering cost and management accounting. The computer-based exam has 33 questions - 32 objective questions worth about 80% of the marks plus one scenario question worth about 20% - sat in 1.5 hours with a 55% pass mark. It tests four areas: costing and pricing, budgeting and forecasting, performance management, and management decision making. The exam is heavily computational, so accuracy with the high-low method, overhead absorption, marginal versus absorption profit, breakeven, variances and NPV is essential. This 100-question bank gives original UK-terminology practice with full worked solutions.
Sample ICAEW MI Practice Questions
Try these sample questions to test your ICAEW MI exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1A cost that stays the same in total within a relevant range regardless of the level of activity is best described as a:
2A company's total costs were £42,000 at 8,000 units and £54,000 at 14,000 units. Using the high-low method, what is the variable cost per unit?
3Using the data from the previous high-low calculation (variable cost £2.00 per unit; total cost £42,000 at 8,000 units), what is the total fixed cost?
4Which of the following is a prime cost?
5A production department budgets overheads of £150,000 and 25,000 direct labour hours. What is the overhead absorption rate per direct labour hour?
6A company absorbs overhead at £6 per labour hour. Actual overhead was £155,000 and 24,000 labour hours were actually worked. What is the over- or under-absorption?
7Overhead will be over-absorbed when:
8Under marginal costing, the value of closing inventory includes:
9A firm uses absorption costing. In a period it produced 10,000 units and sold 9,000. Fixed production overhead absorption rate is £4 per unit. Compared with marginal costing, absorption-costing profit will be:
10Which costing method is most appropriate for a business producing identical, continuous output such as litres of paint passing through several sequential stages?
About the ICAEW MI Exam
Management Information is one of the introductory modules in the ICAEW ACA Certificate Level (and the ICAEW CFAB qualification). It introduces the techniques of cost and management accounting that businesses use to plan, control and make decisions. The syllabus is built around four areas: costing and pricing, budgeting and forecasting, performance management, and management decision making. The computer-based exam contains 33 questions - 32 objective questions worth roughly 80% of the marks and one scenario-based question worth roughly 20% - and lasts 1.5 hours with a 55% pass mark. The module is highly computational, rewarding fast and accurate application of techniques such as the high-low method, overhead absorption, marginal and absorption costing, cost-volume-profit analysis, variance analysis and investment appraisal.
Assessment
33 questions: 32 objective questions (multiple-choice, multi-part multiple-choice or multiple-response) worth about 80% of the marks, plus one scenario-based question worth about 20% of the marks drawn from costing and pricing, budgeting and forecasting, performance management or management decision making.
Time Limit
1.5 hours (90 minutes), with roughly 18 minutes suggested for the scenario question and about 2.25 minutes for each objective question.
Passing Score
55%.
Exam Fee
An exam entry fee is payable per attempt in addition to the annual ACA or ICAEW CFAB student registration fee; ICAEW reviews these fees each year, so confirm the current amount on the ICAEW ACA fees page. (Institute of Chartered Accountants in England and Wales (ICAEW))
ICAEW MI Exam Content Outline
Costing and pricing
Cost classification (direct/indirect, fixed/variable/semi-variable) and cost behaviour, the high-low method for splitting semi-variable costs, absorption costing with overhead apportionment and overhead absorption rates, over- and under-absorption, marginal costing, job, batch and process costing, activity-based costing, and using cost information to set selling and transfer prices.
Budgeting and forecasting
The purposes and behavioural effects of budgeting, preparation of functional, cash and master budgets, fixed versus flexible budgets and budget flexing, forecasting techniques including high-low and simple trend/regression ideas, and reconciling budgeted to actual results.
Performance management
Standard costing and the calculation and interpretation of material, labour, variable overhead, fixed overhead and sales variances, flexing a budget before computing variances, financial and non-financial performance measures, and the features, risks and benefits of management information systems.
Management decision making
Cost-volume-profit and breakeven analysis (contribution, breakeven point, margin of safety, target profit), relevant costing for short-term decisions, make-or-buy, shutdown and one-off pricing decisions, limiting-factor analysis using contribution per unit of scarce resource, and basic investment appraisal using payback, net present value and the internal rate of return.
How to Pass the ICAEW MI Exam
What You Need to Know
- Passing score: 55%.
- Assessment: 33 questions: 32 objective questions (multiple-choice, multi-part multiple-choice or multiple-response) worth about 80% of the marks, plus one scenario-based question worth about 20% of the marks drawn from costing and pricing, budgeting and forecasting, performance management or management decision making.
- Time limit: 1.5 hours (90 minutes), with roughly 18 minutes suggested for the scenario question and about 2.25 minutes for each objective question.
- Exam fee: An exam entry fee is payable per attempt in addition to the annual ACA or ICAEW CFAB student registration fee; ICAEW reviews these fees each year, so confirm the current amount on the ICAEW ACA fees page.
Keys to Passing
- Complete 500+ practice questions
- Score 80%+ consistently before scheduling
- Focus on highest-weighted sections
- Use our AI tutor for tough concepts
ICAEW MI Study Tips from Top Performers
Frequently Asked Questions
How many questions are on the ICAEW Management Information exam?
There are 33 questions: 32 objective questions (multiple-choice, multi-part multiple-choice or multiple-response) worth about 80% of the marks, plus one scenario-based question worth about 20% of the marks.
How long is the Management Information exam and what is the pass mark?
The exam lasts 1.5 hours (90 minutes) and the pass mark is 55%. The scenario question is allotted roughly 18 minutes, leaving about 2.25 minutes per objective question.
Is Management Information part of ICAEW CFAB as well as the ACA?
Yes. Management Information is one of the six Certificate Level modules shared by the ACA qualification and the standalone ICAEW CFAB qualification, so the same exam counts towards both.
What topics does the Management Information exam cover?
Four areas: costing and pricing, budgeting and forecasting, performance management, and management decision making. The scenario question is drawn from one of these areas.
Is the Management Information exam computational?
Yes, heavily. You must apply techniques such as the high-low method, overhead absorption rates, marginal and absorption costing, breakeven and contribution analysis, variance analysis and investment appraisal quickly and accurately.
Are these official ICAEW practice questions?
No. These are original OpenExamPrep practice questions modelled on the MI syllabus and exam style. ICAEW provides its own workbook, question bank and sample exam through its student resources.