1.11 The following assertions relate to financial accounting and to cost accounting: (i) The main users of financial accounting information are external to an organisation. (ii) Cost accounting is that part of financial accounting which records the cash received and payments made by an organisation. Which of the following statements are true? A. Assertions (i) and (ii) are both correct. B. Only assertion (i) is correct. C. Only assertion (ii) is correct. D. None of the above. 1.12 A company uses an overhead absorption rate of K3.50 per machine hour, based on 32,000 budgeted machine hours for the period. During the same period the actual total overhead expenditure amounted to K108,875 and 30,000 machine hours were recorded on actual production. By how much was the total overhead under-or over-absorbed for the period? A. Under absorbed by K3,875 B. Under absorbed by K7,000 C. Over absorbed by K3,875 D. Over absorbed by K7,000 1.13 In a process account, abnormal losses are valued at A. their scrap value B. the same value as good production C. the cost of raw materials D. the value of good production less scrap value 1.14 Assam Limited has fixed costs of K60,000 per annum. It manufactures a single product which it sells for K20 per unit. Its contribution to sales ratio is 40%. Assam Limited's breakeven point in units is: A. 1,200 B. 1,800 C. 5,000 D. 7,500