1. While calculating cost per unit, which of the following cost is used?

a. Total production cost

b. Cost of goods available for sale

c. Cost of goods manufactured

d. Cost of sales

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2. Direct costs are

a. Expenses directly paid to employees

b. Expenses directly associated with sale of finished goods

c. Expenses directly associated with purchase of materials

d. All of the above

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3. Tick the correct formula;

a. Units sold= opening stock of units-units produced+ closing stock of units

b. Units sold= opening stock of units+ units produced- closing of units

c. Units sold = closing stock of units+ units produced- opening stock of units

d. None of the above

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4. Pick out the incorrect formula

a. Operating income= Gross profit operating expenses

b. Operating income= sales- cost of goods sold operating expenses

c. Gross profit = operating expensescosts of goods sold

d. Gross profit = operating expenses + operating income

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5. The term standard cost refer to

a. Average unit cost of product produced in the previous period

b. Average unit cost of product produced by other companies

c. Average unit cost of product produced in the current period

d. Budgeted unit cost of product produced in a particular period

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6. Which of the following statements is false about managerial accounting?

a. Main users are managers and employers

b. Statement here are used for planning and control

c. Statements have to be prepared following GAAP principles

d. Focus is on the future