1.1.The purposes of a budget include:

i) planning.

ii) facilitating communication and coordination.

iii) controlling profit and operations, and evaluating performance and providing incentives.

A.

All of the given answers

B.

i and ii

C.

i and iii

D.

ii and iii

2.Linear programming is useful:

Select one:

A.

only when an activity-based costing system is in use.

B.

when there are many products.

C.

when there is only one constraint.

D.

when there is only one product.

3.C Limited manufactures specialist medical equipment. Recruitment and training of manufacturing staff is difficult and C's operations management estimates that only 160 000 hours of labour at a rate of $50 per hour will be available in the next financial year. The following details relate to C's planned production of three products X, Y and Z for the next 12 months.

X Y Z Selling price $65 $315 $200 Materials cost $10 $50 $40 Labour hours 5 3 Maximum demand 100000 20000 25000