Question
Chris bakes chocolate cakes for sale in his bakery shop. He sells each cake for $10, the unit variable cost is $2.50 and the fixed
Chris bakes chocolate cakes for sale in his bakery shop. He sells each cake for $10, the unit variable cost is $2.50 and the fixed costs per week are $750. Chris budgets to sell 400 chocolate cakes per week. His margin of safety (in cakes per week) is:
Select one:
75
100
300
500
Question6
Alclear Pool & Spa presently provides a weekly maintenance service to 150 homes. Variable costs amount to approximately $12 per week for labour, mileage, chemicals and other supplies. Fixed costs are approximately $13 000 per quarter (13 weeks). Customers pay $270 per quarter for the weekly service. All contracts are written for one quarter (13 weeks).
Determine the number of customers (rounded) to break even.
Select one:
95
103
114
197
Question7
Which of the following willnotresult in inaccurate product costs when conventional approaches to product costing are used?
Select one:
The proportion of manufacturing overhead costs increases.
The proportion of manufacturing overhead costs not related directly to production volume increases.
Non-manufacturing costs that are product-related become substantial.
Product diversity decreases.
Clear my choice
Question8
The 'direct method' ignores the fact that:
Select one:
A.some support departments provide services to other support departments
B.cost allocation is a major factor in its accountability
C.each department's cost is allocated only for the service consumed by it
D.All of the given answers
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