1. The following information is extracted from the job cost sheet of a completed job in July, calculate the total production cost of the job.

Opening balance $10,000

Direct materials incurred $5,000

Direct labor incurred $8,000

Production overhead absorbed $9,000

Administration overhead absorbed $4,000

Adjustment for production overhead over-absorbed $2,500

a. $29,500.

b. $33,500.

c. $34,500.

d. $38,500.

2. Determine in which of the following circumstances marginal costing will report higher profits than absorption costing.

a. When production volume exceeds sales volume.

b. When production overheads decrease.

c. When production overheads increase.

d. When sales volume exceeds production volume.

3. Analyze which of the following statements is correct.

a. Asset turnover measures the ability of a company to generate profits from its assets.

b. Capital gearing is concerned with the amount of debt in a company's long-term capital structure.

c. Residual income is a relative measure of performance used to select proposals based on a relative increase in profits.

d. Triple bottom line captures an expanded spectrum of values and criteria for measuring organizational and societal success from three perspectives: economy, efficiency and effectiveness.

4. Determine which of the following statements are correct.

A mission statement depicts the business rationale for a company's existence and a statement of its aspirations.

Strategic objectives are quantified statements of what the company actually intends to achieve over a period of time.

The triple bottom line focuses on people, planet and profit.

Key performance indicators are measures of strategy that are crucial to determine the success of a company.

a. (i), (ii) and (iv) only.

b. (i), (iii) and (iv) only.

c. (ii), (iii) and (iv) only.

d. All of the above.

5. Identify which of the following statements is correct.

a. Variable costs are conventionally deemed to be constant per unit of output.

b. Variable costs are conventionally deemed to be constant in total when activity level changes.

c. Variable costs are conventionally deemed to be easily controlled by management.

d. Variable costs are conventionally deemed to be increased in steps as activity level increases from one range to the next.