Fill in the blanks with the correct words. __ (i)___ costs are costs that, ___(ii)___, are constant within the ___(iii)__ range as the level of the cost driver varies.

Select one:

a. (i) variable; (ii) in total; (iii) long

b. (i) fixed; (ii) on average; (iii) driving

c. (i) mixed; (ii) per unit; (iii) real

d. (i) fixed; (ii) in total; (iii) relevant

Which of the following items would be recognised as a liability?

Select one:

a. advances from customers for goods and services to be provided next year

b. accumulated depreciation

c. allowance for doubtful debts

d. none of the above

Design Ltd has $200 000 in current assets and $150 000 current liabilities. What would have been the impact on current ratio if the company borrows $50 000 from the bank as a long term loan, repayable in five years?

Select one:

a. Increase

b. Decrease

c. No change

d. Increase and decrease

Which of the following is not an overhead cost?

Select one:

a. Factory electrical expenses

b. Indirect manufacturing labour

c. Salary of sales supervisor

d. Depreciation on the factory building