1.1 to 1.7

QUESTION 1 (15 MARKS, 27 MINUTES) 11 which of the following words DOES NOT describe the main focus of management accounting A Control B Planning C Decision-making D External 1.2 The audit fee paid by a manufacturing company would be classified by that company as A A research and development cost B A Selling and Distribution cost GAn Administration cost D. A Production overhead cost 3.A company uses the repeated distribution method to reapportion service department costs, the use of A That the company's overhead rates are based on estimates of costs rather than actuals B. That there are more service departments that production cost centres C. The company wishes to avoid under or over applied overheads D. That there are more Service departments that carry out work for each other. 1.4 Which one of the following costs would not be classified as a production overhead cost in a beverages processing company? A The depreciation of equipment in the factory B. The cost of ingredients C. The salary of the factory manager D. The cost of Renting the factory building 1.5 Katutura Hospital has recorded the following in cost for carrying health checks on patients during the last three months 159000 600 Month Number of Patients Total cost (5) January 550 15 500 950 - $50 February 750 16 700 March 950 17 100 4 Using the high-low method calculate the cost of carrying out health checks for 650 patients - show your workings A 15 900 B17 950 (+1-95) C. 20 500 D. 12 300 Evo 1.6 which One of the statements is true A. A variable cost is an unavoidable cost B. A variable cost per unit remains constant C. A variable cost is not relevant for decision making D. A variable cost becomes a fixed in the long run 1.7 which one of the statements is true A. A Fixed cost is an unavoidable cost B. A Fixed cost per unit remains constant with an increase in production C. A Fixed cost is not relevant for decision making D. A Fixed cost per unit decreases with an increase in production 2