Answer only. Multiple choice

1. Which of the following variances would be shown in an operating statement prepared under a standard marginal costing system?

1. Variable overhead expenditure variance

2. Variable overhead efficiency variance

3. Fixed overhead expenditure variance

4. Fixed overhead volume variance

1, 2 and 3

1, 3 and 4

2, 3 and 4

1.2 and 4

2. Of the following questions, which one would not be answered by the statement of cash flows?

What was the change in the cash balance during the period?

Were all the cash expenditures of benefit to the company during the period?

Where did the cash come from during the period?

What was the cash used for during the period?

3. Which of the following would not be classified as a direct cost of the organization concerned?

The cost of food served on an airplane flight

The rental cost of a telephone line installed on a construction site

The salary of an in-house lawyer in a publicly listed company

The cost of hops used in a brewery

4. All of the following would appear as significant non-cash transactions in the notes to the

financial statements, except:

issuance of shares for attorney services

issuance of shares to liquidate debt

issuance of bonds for land

issuance of preference shares