Reference no: EM132593718

Question 1: Consider the following data, Direct labour is N$4 per unit, direct material is N$8 per unit, variable overhead is N$2 per unit, total fixed overheads is N$20 000, number of units produced is 5000. Under absorption costing, the absorption cost per unit is

a) N$18, b) N$12, c) None of the above, d) N$14, e) N$8

Question 2: Consider the following data, Direct labour is N$4 per unit, direct material is N$8 per unit, variable overhead is N$2 per unit, total fixed overheads is N$20 000, number of units produced is 5000. How much will be the value of ending inventory under variable costing, if only 4000 units are sold during the period?

a) N$14 000, b) N$12 000, c) N$ 70 000 d) N$18 000

Question 3: Consider the following data, Direct labour is N$4 per unit, direct material is N$8 per unit, variable overhead is N$2 per unit, total fixed overheads is N$20 000, number of units produced is 5000. How much will be the value of ending inventory under absorption costing, if only 4000 units are sold during the period?

b) N$13 000, b) N$70 000, c) N$ 14 000 d) N$18 000

Question 4: The first budget in the budgeting process is normally the ......... budget

a) Cash b) Sales c) Purchases d) Production

Question 5: The end product of the budgeting process is

a) Cash budget b) Functional Budget c) Master Budget d) None of the above

Question 6:  Which of the budgets below is not a functional budget

a) Sales budget b) Master budget c) Production budget d) Flexible budget e) Cash budget

Question 7:  Fire investment CC has provided the following information for the year ended 30 June 2019: sales of N$ 100 000, purchases of N$ 70 000, opening inventory of N$ 20 000 and gross margin of N$ 30 000. Cost of sales is sales less gross profit which is equal to N$ 70 000.available inventory is opening inventory plus purchases which is equal to N$ 90 000. What is the closing inventory for the business at year-end?

a) N$ 65 000 b) N$ 14 000 c) N$ 20 000 d) N$ 24 000

Question 8: Budgeting can be used in an organisation to

a) Motivate mangers to achieve organizational goals

b) Control operations

c) Provide managers with information for making decisions and planning

d) All of the above

Question 9: What does conversion cost consist of

a) Manufacturing overhead cost

b) Direct labour and manufacturing overhead cost

c) Direct labour cost

d) Direct materials and direct labour cost

Question 10: Total costs incurred in a production process is divided by total number of output units to calculate the

a) Unit costs

b) Cos of indirect labour

c) Cost of direct labour

d) Cost of direct material