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