1. Firm A has spent $10,000 producing 70 complete units and another 40 which are 60% complete. Assuming 65 (fully complete) units are sold, what is the cost per equivalent unit (allow 2 decimal places)?

A. $106.38

b. $153.85

c. None of the above

d. $142.86

2. Which of the following costs is not included while computing unit product cost under absorption costing?

Select one:

A. Direct labor cost

B. Direct materials cost

C. Fixed non-manufacturing overhead cost

D. Fixed manufacturing overhead cost

3. Which of the following is NOT a factor that helped lead to the development of Activity Based Costing?

Select one:

A. Increased computing power to deal with complexity of ABC calculations.

B. Increased levels of competition, meaning it is more important to charge the 'correct' price.

C. Increased proportions of non-manufacturing costs

D. Decreased levels of non-volume-driven manufacturing overhead costs.

Clear my choice

Which of the following statements is true?

Select one:

A. Under traditional costing, product cost distortions will be highly significant if overhead costs are a small proportion of product cost.

B. Activity-based costing can significantly improve product cost accuracy where overhead costs are a large proportion of total costs.

C. In recent decades Direct Labour has increased as a proportion of total manufacturing costs in many manufacturing businesses.

D. Activity-based costing cannot significantly improve product cost accuracy where there is significant product diversity.

4. The percentage complete of opening work in progress can be ignored for FIFO.

Select one:

True

False