单选题Acompanymanufacturesthreeproductsusingdifferentamountsofthesamegradeoflabour,whichisinshortsupply.Thefollowingbudgeteddatarelatestotheproducts:Whatordershouldtheproductsbemanufacturedintoensurethatprofitismaximised?P1P2P3
单选题The following statements have been made about the materials mix variance for a company manufacturing different products using the same type of material (measured in kgs):
(i) The mix variance can be calculated by taking the difference between the actual quantity in the standard mix andthe actual quantity in the actual mix, then multiplying it by the actual cost per kg
(ii)The mix variance arises because there is a difference between what the input should have been for the output achieved and the actual output
Which of the above statements is/are correct?
单选题A government department generates information which should not be disclosed to anyone who works outside of the department
单选题At the end of 20X1, an investment centre has net assets of $1m and annual operating profits of $190,000
单选题Acompanymanufacturestwoproducts,CandD,forwhichthefollowinginformationisavailable:Usingactivity-basedcosting,whatisthebudgetedoverheadcostperunitofproductD?
单选题The following statements have been made in relation to activity-based costing:
(1) A cost driver is a factor which causes a change in the cost of an activity
(2) Traditional absorption costing tends to under-estimate overhead costs for high volume products
Which of the above statements is/are true?
单选题The following scenario relates to questions 2630
单选题Which of the following describes a ‘basic standard’ within the context of budgeting?
单选题The following scenario relates to questions 2125.
Corfe Co is a business which manufactures computer laptop batteries and it has developed a new battery which has a longer usage time than batteries currently available in laptops. The selling price of the battery is forecast to be $45.
The maximum production capacity of Corfe Co is 262,500 units. The companys management accountant is currently preparing an annual flexible budget and has collected the following information so far:
In addition to the above costs, the management accountant estimates that for each increment of 50,000 units produced, one supervisor will need to be employed. A supervisors annual salary is $35,000.
The production manager does not understand why the flexible budgets have been produced as he has always used a fixed budget previously.
单选题X Co uses a throughput accounting system. Details of product A, per unit, are as follows:
Selling price $320
Material costs $80
Conversion costs $60
Time on bottleneck resource 6 minutes
What is the return per hour for product A?
单选题A division is considering investing in capital equipment costing $2·7m. The useful economic life of the equipment isexpected to be 50 years, with no resale value at the end of the period. The forecast return on the initial investmentis 15% per annum before depreciation. The division’s cost of capital is 7%.
What is the expected annual residual income of the initial investment?
单选题C Co uses material B, which has a current market price of $0·80 per kg. In a linear program, where the objective is to maximise profit, the shadow price of material B is $2 per kg. The following statements have been made:
(i)Contribution will be increased by $2 for each additional kg of material B purchased at the current market price
(ii)The maximum price which should be paid for an additional kg of material B is $2
(iii)Contribution will be increased by $1·20 for each additional kg of material B purchased at the current market price
(iv)The maximum price which should be paid for an additional kg of material B is $2·80
Which of the above statements is/are correct?
单选题The Fruit Company (F Co) currently grows fruit which customers pick themselves from the fields before paying. F Cois concerned that a large number of customers are eating some of the fruit whilst picking it and are therefore not paying for all of it. As a result, it has to decide whether to hire staff to pick and package the fruit instead. The following values and costs have been identified:
(i)The total sales value of the fruit currently picked and paid for by customers
(ii)The cost of growing the fruit
(iii)The cost of hiring staff to pick and package the fruit
(iv) The total sales value of the fruit if it is picked and packaged by staff instead
Which of the above are relevant to the decision?
单选题The following ratios have been calculated for a company:
Gross profit margin 42%
Operating profit margin 28%
Gearing (debt/equity) 40%
Asset turnover 65%
What is the return on capital employed for the company?
单选题At the start of the year, a division has non-current assets of $4 million and makes no additions or disposals during the year. Depreciation is charged at a rate of 10% per annum on all non-current assets held at the end of the year.Working capital is $0·5 million at the start of the year although this is expected to increase by 20% by the end of theyear. The budgeted profit of the division after depreciation is $1·2m.
What is the expected ROI of the division for the year, based on average capital employed?
单选题The following information is available for a manufacturing company which produces multiple products:
(i)The product mix ratio
(ii)Contribution to sales ratio for each product
(iii)General fixed costs
(iv) Method of apportioning general fixed costs
Which of the above are required in order to calculate the break-even sales revenue for the company?
单选题Caf Co budgeted to sell 10,000 units of a new product in the period at a budgeted selling price of $5 per unit. Actual sales volumes in the period were as budgeted but the actual sales price achieved was only $4 per unit. This was because a competitor launched a similar product at the same time. Caf Co had been unaware that this was going tohappen when it prepared its budget and, had it known this, it would have revised its expected selling price to $3·80per unit, which was the price of the competitor’s product.
What is the sales price planning variance?
单选题Which of the following is an advantage of non-participative budgeting as compared to participative budgeting?
单选题Acompany’ssalesandcostofsalesfigureshaveremainedunchangedforthelasttwoyears.Thefollowinginformationhasbeennoted:Thefollowingstatementshavebeenmadeaboutthecompany’sperformanceforthemostrecentyear:(i)Customersaretakinglongertopayandthismayhavecontributedtothedeclineinthecompany’scurrentratio(ii)Inventorylevelshaveincreasedandthismayhavecontributedtothedeclineinthecompany’squickratioWhichoftheabovestatementsis/aretrue?
单选题TheMobileSandwichCopreparessandwicheswhichitdeliversandsellstoemployeesatlocalbusinesseseachday.Demandvariesbetween325and400sandwicheseachday.Asthedayprogresses,thepriceofthesandwichesisreducedand,attheendoftheday,anysandwichesnotsoldarethrownaway.Thecompanyhaspreparedaregrettabletoshowtheamountofprofitwhichwouldbeforegoneeachdayateachsupplylevel,giventhevaryingdailylevelsofdemand.Applyingthedecisioncriterionofminimaxregret,howmanysandwichesshouldthecompanydecidetosupplyeachday?