D Question 1 1 pts As the cost accountant of The Big Eight Construction (Pty) Ltd, you have been instructed by your manager to use the ABC costing method in your company. When accounting for machining activities using the ABC costing method, which of the following can you classify as the cost driver? O A.Direct labour hours B.Machine hours C.Indirect labour hours D.Direct material cost Question 2 1 pts As the cost accountant of The Big Eight Construction (Pty) Ltd, you have been instructed by your manager to use the ABC costing method in your company. Which of the following cannot be classified as an advantage of the ABC costing method? A. Improved cost estimation and product pricing B. Better understanding of overheads C. Costing of processes and supply chains OD. It is time consuming to collect data and cost all activities The following information relates to questions 3 and 12 You are the cost accountant of Prime Steel Technologies (Pty) Ltd and you are busy accounting for various costing activities such as direct and indirect material, inventory valuation, EOQ. absorption rates, and assigning service costs. Answer questions 3 to 8 below. Question 3 1 pts Which of the following two methods of inventory valuation are allowed in South Africa? O A. FIFO and LIFO B. Weighted average and LIFO OC. FIFO and weighted average method OD.LIFO only D Question 5 1 pts Which of the following is an exception to the three methods used to re-assign service department's costs? O A. The Straight-line method OB. The direct method OC. The step method OD. The linear algebraic method Question 6 1 pts Which overhead rate are you calculating when you are using the following formula: Budgeted manufacturing overheads/Budgeted number of units produced? A. Labour hour basis B. Labour cost basis C. Product unit basis OD. Machine hour Question 7 1 pts Which of the following is not a component of total manufacturing costs? OA. Economic order quantity B. Direct labour OC. Direct material D. Indirect costs Question 8 1 pts When stock is held for financial reasons such as an anticipated substantial rise in stock price, it is referred to as? A. Buffer stock B. Safety stock OC. Speculative stock OD. Normal stock Question 9 1 pts Which of the following would you classify as a direct labour cost? A. Salaries of workers in the marketing department B. Salaries of workers in the human resources department C. Salaries of workers in the steel processing department D. Salaries of workers in the administration department U Question 10 1 pts Which of the following is an example of administrative cost within a manufacturing Enterprise? A. Salaries of factory equipment B. Depreciation of office equipment d C. Factory rent OD. Delivery vehicle instalment U Question 11 1 pts With reference to accounting for steel processing operations in your company, steel purchased for production purposes is an example of? O A. Finished goods OB. Factory overheads C. Work-in-process D. Direct materials n Question 12 1 pts To which of the following accounts will all indirect manufacturing costs be posted to? O A. Manufacturing overheads account B. Work in process account OC. Direct labour account OD. Direct material account