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Exam Review

Key Facts: SOCPA Management and Governmental Accounting Exam

36 + 2

Multiple-choice and essay questions on the official exam

SOCPA Professional Exams Guide 2026

180 minutes

108 minutes for multiple choice and 72 minutes for essays

SOCPA guidance blueprint, February 2026

75% / 25%

Share of marks for multiple-choice and essay questions

SOCPA guidance blueprint, February 2026

60/100

Pass mark, with at least 5 marks from the essay section

SOCPA guidance blueprint, February 2026

20–25%

Weight of accounting in government units

SOCPA guidance blueprint, February 2026

Arabic & English

Languages in which the Fellowship exam is held

SOCPA Professional Exams Guide 2026

4 years + 30 days

Time to pass the other subjects before a passed subject is cancelled

SOCPA Professional Exams Guide 2026

SOCPA Management and Governmental Accounting is a 180-minute Fellowship subject with 36 multiple-choice and 2 essay questions (75% and 25% of marks), offered in Arabic and English. Passing needs 60/100, including at least 5 essay marks. These questions are an independent English-language MCQ study adaptation.

Sample SOCPA Management and Governmental Accounting Practice Questions

Try these sample questions to review concepts for the SOCPA Management and Governmental Accounting exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1A manufacturer budgets overhead of SAR 600,000 and 150,000 direct labor hours for the year. Job 101 uses direct materials of SAR 45,000 and direct labor of SAR 30,000 (7,500 hours). What is the total manufacturing cost of Job 101?
A.SAR 75,000
B.SAR 105,000
C.SAR 135,000
D.SAR 195,000
Explanation: The predetermined overhead rate is SAR 600,000 ÷ 150,000 hours = SAR 4 per direct labor hour, so Job 101 absorbs 7,500 × SAR 4 = SAR 30,000 of overhead. Total cost is SAR 45,000 + SAR 30,000 + SAR 30,000 = SAR 105,000.
2A Jubail plant's actual overhead is SAR 540,000. Overhead is applied at SAR 25 per machine hour, and 22,000 machine hours were worked. If the over- or under-applied balance is closed to cost of goods sold, what is the result?
A.SAR 10,000 underapplied; increases cost of goods sold
B.SAR 10,000 overapplied; increases cost of goods sold
C.SAR 10,000 underapplied; decreases cost of goods sold
D.SAR 10,000 overapplied; decreases cost of goods sold
Explanation: Applied overhead is 22,000 × SAR 25 = SAR 550,000, which exceeds actual overhead of SAR 540,000, so overhead is overapplied by SAR 10,000. Too much overhead was charged to products, so closing the balance reduces cost of goods sold by SAR 10,000.
3Riyadh Chemicals uses weighted-average process costing. In May, the blending department had 5,000 units in opening work in process (40% complete for conversion), started 25,000 units, and had 6,000 units in closing work in process (60% complete). What are the equivalent units for conversion costs?
A.27,600 units
B.25,600 units
C.24,000 units
D.30,000 units
Explanation: Units completed are 5,000 + 25,000 − 6,000 = 24,000. Under the weighted-average method, equivalent units are units completed plus the equivalent units in closing work in process: 24,000 + (6,000 × 60%) = 27,600. Work done on opening inventory in the previous period is not deducted.
4A blending department had 5,000 units in opening work in process (40% complete for conversion), started 25,000 units, completed 24,000 units and had 6,000 units in closing work in process (60% complete). Using the FIFO method, what are the equivalent units for conversion costs?
A.27,600 units
B.22,600 units
C.25,600 units
D.29,600 units
Explanation: FIFO counts only work done this period: completing opening inventory (5,000 × 60% = 3,000), units started and completed (24,000 − 5,000 = 19,000), and work on closing inventory (6,000 × 60% = 3,600), a total of 25,600. Equivalently, the weighted-average figure of 27,600 less the 2,000 equivalent units in opening inventory gives 25,600.
5A department using FIFO process costing has conversion costs of SAR 18,000 in opening work in process and SAR 179,200 added this period. Equivalent units for conversion are 25,600 under FIFO (27,600 under the weighted-average method). What is the FIFO conversion cost per equivalent unit, and why?
A.SAR 7.70, because FIFO averages opening inventory costs with current-period costs
B.SAR 7.00, because FIFO uses only current-period costs, which measures current-period performance
C.SAR 6.30, because opening inventory costs are deducted from current-period costs
D.SAR 7.14, because total costs are divided by the weighted-average equivalent units
Explanation: Under FIFO, the cost per equivalent unit uses only costs added this period divided by FIFO equivalent units: SAR 179,200 ÷ 25,600 = SAR 7.00. The SAR 18,000 in opening inventory is kept separate and assigned to the opening units completed, so the rate reflects current-period efficiency.
6A Yanbu plastics plant inspects units at the 80% point. Normal spoilage is 3% of good units passing inspection. This month 40,000 good units passed inspection and 1,800 units were spoiled. How are the spoilage costs treated?
A.All 1,800 spoiled units are expensed immediately as a period loss
B.All 1,800 spoiled units are absorbed into the cost of the good units that passed inspection this month
C.The cost of 600 spoiled units is absorbed into good units, and the cost of the other 1,200 units is a period loss
D.Normal spoilage (1,200 units) goes into the cost of good units; abnormal spoilage (600 units) is a period loss
Explanation: Normal spoilage is 3% × 40,000 = 1,200 units, so abnormal spoilage is 1,800 − 1,200 = 600 units. Normal spoilage is an unavoidable cost of producing good units and is included in their cost, while abnormal spoilage reflects inefficiency and is recognized as a loss in the period.
7In a job-order costing system, which document authorizes the issue of raw materials to production and supports the debit to work in process?
A.Materials requisition form
B.Purchase order
C.Job cost sheet
D.Receiving report
Explanation: A materials requisition form authorizes the transfer of materials from the storeroom to production and identifies the job to be charged. It supports the entry debiting work in process (for direct materials) and crediting raw materials inventory.
8In an activity-based costing hierarchy, how are these activities classified: (1) recalibrating machines before each production run, (2) engineering redesign of one product line, and (3) heating and security for the factory building?
A.Unit-level, batch-level and facility-sustaining
B.Batch-level, unit-level and product-sustaining
C.Batch-level, product-sustaining and facility-sustaining
D.Product-sustaining, batch-level and unit-level
Explanation: Recalibration happens once per run regardless of the units in it, so it is batch-level. Redesigning a product line supports that product regardless of batches or units, so it is product-sustaining. Heating and security support the whole facility, so they are facility-sustaining.
9Al-Ahsa Manufacturing has two activity pools: machine setup (SAR 240,000; 400 setup hours) and inspection (SAR 180,000; 1,500 inspection hours). Product Alpha uses 20 setup hours and 150 inspection hours for 1,000 units. What overhead is assigned to Alpha in total and per unit?
A.SAR 30,000 in total; SAR 30.00 per unit
B.SAR 12,000 in total; SAR 12.00 per unit
C.SAR 92,400 in total; SAR 92.40 per unit
D.SAR 18,000 in total; SAR 18.00 per unit
Explanation: The setup rate is SAR 240,000 ÷ 400 = SAR 600 per hour and the inspection rate is SAR 180,000 ÷ 1,500 = SAR 120 per hour. Alpha receives (20 × SAR 600) + (150 × SAR 120) = SAR 12,000 + SAR 18,000 = SAR 30,000, or SAR 30.00 per unit.
10When a diversified manufacturer moves from volume-based overhead allocation, such as direct labor hours, to activity-based costing, what pattern of cross-subsidization is typically revealed?
A.High-volume, simple products were undercosted, while low-volume, complex products were overcosted
B.Both high-volume and low-volume products were overcosted, because overhead had been double-counted
C.Direct materials and direct labor were misallocated, while overhead allocations were broadly correct
D.High-volume, simple products were overcosted, while low-volume, complex products were undercosted
Explanation: Volume-based systems spread overhead in proportion to unit-level drivers, so high-volume products absorb a large share even though low-volume, complex products use more batch-level and product-sustaining activities such as setups and engineering changes. Traditional systems therefore tend to overcost high-volume simple products and undercost low-volume complex ones.

About the SOCPA Management and Governmental Accounting Exam

The Management and Governmental Accounting exam is one of six SOCPA Fellowship subjects. It has 36 multiple-choice questions and 2 essay questions in 180 minutes and is offered in Arabic and English. The February 2026 blueprint covers four topics: cost accounting, management accounting, accounting in government units under the public sector accounting standards, and non-profit entities under SOCPA's standards. This free bank is an English-language MCQ study adaptation: it practices the knowledge and calculations behind the exam, but it does not simulate the essay questions and is not official SOCPA material.

Exam sponsor: Saudi Organization for Chartered and Professional Accountants (SOCPA). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

One 180-minute session: 36 multiple-choice questions (108 minutes) and 2 essay questions (72 minutes). Multiple-choice questions carry 75% of the marks and essays 25%. To pass, a candidate needs at least 60 of 100 marks, including at least 5 marks in the essay section.

Time Limit

180 minutes (108 + 72)

Passing Score

60/100, with at least 5 essay marks

Exam / Certification Fees

SAR 1,000 first sitting or SAR 500 later sitting, plus SAR 300 per subject

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

25–45%

Cost Accounting

Objectives and scope of cost and management accounting, cost concepts and classification, measuring production costs and costing theories such as absorption and variable costing, job order costing, process costing, contract and operation costing, joint and by-product costing, and just-in-time (backflush) systems.

26–45%

Management Accounting

Standard costs and variance analysis, inventory control and the economic order quantity, target costing and cost reduction, cost allocation and activity-based costing, cost-volume-profit analysis, relevant costing and decision making, external and internal (transfer) pricing, budgeting, capital budgeting, developments in management accounting, the balanced scorecard, customer profitability analysis, total quality management and the theory of constraints.

20–25%

Accounting in Government Units

The concept, characteristics, objectives and building blocks of government accounting under the public sector accounting standards (based on IPSAS), the effects of moving from the cash basis to the accrual basis, presentation of general purpose financial statements, accounting for exchange and non-exchange revenue and for expenses, cash-generating and non-cash-generating assets and their impairment, and inventories.

4–10%

Non-Profit Entities

SOCPA's accounting standards for non-profit entities, the classes of net assets (unrestricted, restricted and endowment, or awqaf), their financial statements and accounting, and accounting for universities and colleges, health units and hospitals, and other non-profit entities.

Preparing for the SOCPA Management and Governmental Accounting Exam

What You Need to Know

  • Passing score: 60/100, with at least 5 essay marks
  • Assessment: One 180-minute session: 36 multiple-choice questions (108 minutes) and 2 essay questions (72 minutes). Multiple-choice questions carry 75% of the marks and essays 25%. To pass, a candidate needs at least 60 of 100 marks, including at least 5 marks in the essay section.
  • Time limit: 180 minutes (108 + 72)
  • Exam / certification fees: SAR 1,000 first sitting or SAR 500 later sitting, plus SAR 300 per subject Official sources

Using Our Practice Resources

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

SOCPA Management and Governmental Accounting: Suggested Study Strategy

1Split your time across cost accounting and management accounting, which together carry most of the marks, but do not skip government units (20–25%).
2Practice variance analysis, CVP, relevant costing and capital budgeting calculations until you can set out the workings quickly.
3Learn how accrual-based public sector statements differ from cash-basis budget reporting, and the difference between exchange and non-exchange revenue.
4For non-profit entities, know SOCPA's three classes of net assets: unrestricted, restricted and endowment (awqaf).
5With only two essay questions, practice writing clear, structured answers. You must score at least 5 essay marks as well as 60 overall.

Frequently Asked Questions

How many questions are on the SOCPA Management and Governmental Accounting exam?

38: 36 multiple-choice questions (108 minutes) and 2 essay questions (72 minutes), in one 180-minute session. Multiple-choice questions carry 75% of the marks and essays 25%.

What score do I need to pass?

You need at least 60 out of 100 marks, and at least 5 of those marks must come from the essay section. Each Fellowship subject is marked and passed separately.

Which government accounting rules are tested?

The blueprint tests accounting in government units under the public sector accounting standards, which are based on IPSAS, including the move from cash to accrual accounting, financial statements, revenue and expenses, asset impairment and inventories.

Can I take the SOCPA Fellowship exams in English?

Yes. SOCPA's 2026 Professional Exams Guide states that the Fellowship exam is held in Arabic and English.

How much does the SOCPA Fellowship exam cost?

SOCPA lists SAR 1,000 for your first sitting or SAR 500 for a later sitting, plus SAR 300 for each subject you enter. Check the current fees on SOCPA's website before registering.

When are the 2026 SOCPA Fellowship exams?

SOCPA scheduled four cycles in 2026, with Management and Governmental Accounting on the fourth day of each: 8 April, 1 July, 30 September and 23 December. Registration for the December cycle runs from 5 to 14 November 2026.

Are these questions the same format as the real exam?

No. This is an independent, English-language MCQ study adaptation. It covers the blueprint's four topics but does not reproduce the essay questions, which carry 25% of the marks. The questions are original and are not SOCPA past papers.