All of the following may be cost objects except:

Select one:

a. a cost centre

b. a customer

c. a manager

d. a product

using the FIFO system for pricing stock issues means that when prices are rising:

Select one:

a. product costs are overstated and profits understated

b. product costs are kept in line with price changes

c. product costs are understated and profits are overstated.

d. product costs are understated and profits understated

A company produces and sells a single product whose variable cost is $6 per unit. Fixed costs have been absorbed over the normal level of activity of 200,000. The current selling price is $10 per unit. How much profit is made under marginal costing if the company sells 250,000 units?

Select one:

a. $500,000

b. $600,000

c. $900,000

d. $1,000,000

31.The following estimates have been prepared for a retailer's next budget period:

Total cost $

Sales 160,000

Opening debtors 27,500

E Ltd's stock purchases during a recent week were as follows:

Day Price per unit ($) Unit Purchased

1 1.45 55

2 1.60 80

3 1.75 120

4 1.80 75

5 1.90 130

There was no stock at the beginning of the week. 420 units were issued to production during the week. The company updates its stock records after every transaction.

Using a FIFO method of costing stock issues, the value of closing stock would be:

Select one:

a. $58

b. $76

c. $72

d. $70

If actual output is lower than budgeted output, which of the following costs would you expect to be lower than the original budget?

Select one:

a. Total fixed costs

b. Total variable costs

c. Variable costs per unit

d. Fixed costs per unit

A company is preparing a production budget for the next year. The following information is relevant:

Budgeted sales 10,000 units

Opening stock 600 units

Closing stock 5% of budgeted sales

The production process is such that 10% of the units produced are rejected.

What is the number of units required to be produced to meet demand?

Select one:

a. 8900 units

b. 9900 units

c. 10 900 units

d. 11 000 units

Closing debtors 19,400

Opening stock 16,600

Closing stock 18,700

The gross profit margin on sales is budgeted at 55%

The value of purchases made by the retailer during the budget period is expected to be

Select one:

a. $69, 900

b. $74, 100

c. $85,900

d. $90,100

The following relate to procedures for materials: (1) check the goods received note, (2) Raise a stores requisition note, (3) Update the stores ledger account for the purchase, (4) Raise a purchase order. Which would be the correct order of the above when in the process of purchasing and using materials

Select one:

a. 4,2,1,3

b. 2,1,3,4

c. 4,1,3,2

d. 1,4,3,2

The following estimates have been prepared for a retailer's next budget period:

Total cost $

Sales 160,000

Opening debtors 27,500

Closing debtors 19,400

Opening stock 16,600

Closing stock 18,700

The gross profit margin on sales is budgeted at 55%.

The cash which the retailer expects to receive from customers during the budget period amounts to

Select one:

a. $88,000

b. $151,900

c. $157,900

d. $168,100