Reference no: EM132999525

Questions -

Q1. Ayesha is the manager of the window manufacturing department in a construction business. Which cost would not be classed as a direct cost of the window manufacturing process?

a. Glass for the window panes

b. Wages of tradesmen

c. Timber for the window frames

d. Depreciation of tools and equipment

Q2. From the information, calculate the unit sales necessary to achieve the desired profit: Selling price per unit $20.00, Variable cost per unit $12.00, Fixed costs $50 000, After-tax desired profit $70 000, Tax rate 30 percent.

a. 15 000 units

b. 8750 units

c. 12 500 units

d. 18 750 units

Q3. Deep Blue Sea Lodge Ltd acquired all the shares in Snorkel Ltd for $750 000. The fair value of the assets acquired was $1 000 000 and the fair value of the liabilities assumed was $300 000. What is the amount of goodwill acquired by Deep Blue Sea Lodge Ltd?

a. $50000

b. $750000

c. $700000

d. $300000

Q4. Using the information, calculate the ARR: Average profit before depreciation $75 000, Annual depreciation $15 000, Period of investment 4 years, Initial investment $800 000, Value at end of the investment period $100 000.

a. 15 percent

b. 16.67 percent

c. 13.33 percent

d. 18.75 percent

Q5. Manufacturing company Fancy Feet Ltd sells sandals. The desired ending inventory for July is budgeted at 400 pairs of sandals. If there are 300 pairs on hand at the beginning of July, and the expected sales volume for the month is expected to be 1800 units, how many pairs of sandals will Fancy Feet Ltd need to purchase for the month?

a. 1500

b. 2500

c. 1900

d. 1700