Four multiple-choice questions...

3. The Global Reporting Initiative (GRI) Framework is a reporting system that aims to:

A. enhance the firm's reputation in the community.

B. enable the inclusion of both financial and non-financial data in the firm's management information system.

C. reduce the risk of future litigation for breaching environmental laws.

D. increase organisational transparency and accountability.

. From the following list of costs, calculate the amount of conventional environmental costs.

4. Equipment purchased to reduce emissions $ 200 000

Monitoring emissions $ 50 000

Estimated fines for breaching environmental regulations $ 500 000 Estimated future costs-the need to dispose of firm's products which contain

hazardous material 550 000

Purchase of recyclable material $ 130 000

On-going clean-up costs $ 300 000

Estimate of potential liability-oil spill $ 600 000

Purchase of recyclable packaging materials $ 25 000

Estimate of lost business-adverse television publicity $ 110 000

A. $350 000

B. $355 000

C. $110 000

D. $550 000

5. South River Chemicals Pty Ltd manufactures a product called Zybek. Direct materials are added at the beginning of the process and

conversion activity occurs uniformly throughout the process. The following data pertains to the month of May.

Direct materials

Work in process, May 1-60% 15,000

Units started during May 60,000

Units completed and transferred out 68,000

Work in process, May 31-20% 7 000

Conversion costs

Using the weighted-average method of process costing, calculate the equivalent units of direct materials and conversion costs for the month of May.

A. DM 75 000; CC 69 400

B. DM 75 000; CC 60 400

C. DM 60 000; CC 60 400

D. DM 68 000; CC 69 400

6. A special order generally should be accepted if:

A. its revenue exceeds allocated fixed costs, regardless of the variable costs associated with the order.

B. excess capacity exists and the revenue exceeds all variable costs associated with the order.

C. excess capacity exists and the revenue exceeds allocated fixed costs.

D. the revenue exceeds variable costs, regardless of available capacity.