A firm has produced the following budget for an activity level of $20,000$ units:

Materials R$150,000$

Direct labour R$400,000$

Fixed expenses R$770,000$

What would be the total cost for a level of activity of $22,500$ units? A crockery company makes Chinese porcelain cups and saucers. How much clay would they need to buy if:

$1$ cup uses $150$g of clay

$1$ saucer uses $100$g of clay

They plan to make $348,000$ cups and saucers

There is no opening inventory

It would like to have closing inventories of $4,000$kg of clay? a$\mathrm{.}91,000$ kg

b$\mathrm{.}83,000$ kg

c$\mathrm{.}99,500$ kg

d$\mathrm{.}87,000$ kg If the industry your business works in is quite volatile and you want to keep a tight watch on your budgets, making sure that the business doesn$$t vary too much in the year, you would break your budgets up in quarters.

Select one:

True

False