MULTIPLE-CHOICE QUESTIONS QUESTION 1 One of the main objectives of financial accounting is the preparation of financial statements True 2) False QUESTION 2 Which one of the following is not the focus of management accounting? Whole organisation as well as sections or departments Compliance with legislation, laws and standards Timely and relevant information used in decision making 4) Reports are prepared for internal use QUESTION 3 Which one of the following costs are classified as period costs? Glue used for binding the books Insurance cost of factory equipment Salaries of sales personnel Printing press manager's salary MAC1501/102 QUESTION 4 Which one of the following costs are classified as mixed costs? Rental for the Pretoria printing press Wood used for tables production Cleaning supplies used in the automobile assembly plant Costs of advertising products on television QUESTION 5 Costing method that treats variable costs as product costs and fixed overheads as period costs. 1) Absorption costing methods 2) Direct costing methods Activity based costing methods 4) Traditional costing methods Use the following information to answer questions 6 to 9: Makolobeng Limited uses a perpetual inventory system and applies the first-in-first-out (FIFO) metod for the valuation of inventory. The following information relates to Material z for the month ending 29 February 2020: Date Transaction 3 February Purchase of 50 units at the total cost of R11 000 4 February Issue of 150 units 5 February Purchase of 100 units at the total cost of R21 000 7 February Issue of 80 units 8 February Issue of 60 units 10 February Returns from production of 10 excess units (returned in good condition) that were issued on the 7th February 13 February Purchase of 100 units at the total cost of R21 500 15 February Issue of 50 units 18 February Issue of 70 units 20 February Purchase of 120 units at the total value of R25 200 25 February Issue of 130 units The opening balance of inventory on the 1st of February was 200 units at the value of R40 000 QUESTION 6 The value of inventory returned on 10 February 2020 amounts to ... 1) R2 100 2) R2 200 3) R2 000 4) None of the above alternatives 5 QUESTION 7 e number of units available for issue to production on 16 February 2020 amount to ... 110 units 130 units 120 units None of the above alternatives QUESTION 8 The number of units available for issue to production on 29 February 2020 .... 20 units 2) 30 units 3) 40 units None of the above alternatives QUESTION 9 The value of closing inventory on 29 February 2020 would be ... R4 200 R6 300 R8 400 None of the above alternatives 1) QUESTION 10 Which one of the following is not classified as inventory under manufacturing environment? Merchandise 2) Finished goods Work-in-progress 4) Materials and supplies 2) QUESTION 11 One of the following is not deductible from employee's salary or wage: 1) Pay-as-you-earn (PAYE) Employees' retirement contribution Employers' medical aid contribution Employees' Unemployment Insurance Fund contribution Ise the following information to answer questions 11 to 13: Mogalead o manufactures air pollution control devices. Mr Tsotsi is directly involv e produco e se devices. The following information was taken from daily time tickets of Mr Sots the week ended 05 April 2020: Normal time 45 hours Overtime 5 hours Sunday 4 hours Normal rate R30 per hour Additional information: Overtime is paid at one-and-half times the normal rate and hours worked on Sunday at twice the normal rate PAYE tax deduction of 18,5% should be made every week Union fees of R8 is deducted weekly Ulf contributions are calculated at 1% of gross wages for both employer and employee. Each employee contributes 8% of normal wage towards the pension fund, and the employer contributes 16% of normal wage. QUESTION 12 Pension fund contribution deductible from Mr Tsotsi's payslip amount to 1) R108,00 2) R145.20 3) R140,40 4) None of the above alternatives QUESTION 13 Net wage for Mr Tsotsi for the week ended 05 April 2020 amount to: 1) R1 405,03 2) R1 402,25 3) R1 365,05 None of the above alternatives QUESTION 15 Factory's capacity where the theoretical capacity has been reduced by expected interruption in production, such as planned maintenance. Budgeted capacity Theoretical capacity Practical capacity Normal capacity Use the following information to answer questions 16 to 18: Chwepheshe Limited manufactures and sells high quality wood products. The company has two production departments Cutting and Finishing. It also has two service departments, Quality control and Maintenance Budgeted production costs and the expected level of activity for the coming year, which have been developed by the company's management accountant are presented below Cutting Finishing Quality Maintenance control Production units. 6 300 10 300 Prime costs Direct material........ R69 300 R144 900 Direct labour. R37 800 R41 400 Budgeted overheads: Direct costs................ Machine hours........... Number of employees...... R41 400 5 400 1 27 R29 205 2 100 21 R24 900 1 500 6 R39 970 1 200 Additional information: Maintenance department renders service to all other departments, whereas quality control renders service to production departments only. The maintenance department is allocated using the number of employees and the quality control department is allocated on the basis of machine hours. QUESTION 16 The total manufacturing costs for Cutting department amount to: 1) R189 611 2) R107 100 3) R188 370 4) None of the above alternatives QUESTION 14 Total cost to company amount to: 1) R1 815,00 2) R1 941,15 R2 049,15 None of the above alternatives 3) MAC 1501/102 QUESTION 17 Total manufacturing costs for Finishing department amount to 1) R240 504 R186 300 3) R239 264 2) None of the above alternatives QUESTION 18 The planned product cost per unit in the Cutting department amount to 1) R30.10 2) R17.00 3) R29,90 None of the above alternatives QUESTION 19 When we use the high-low method, we determine the variable cost per unit by 1) subtracting the fixed cost per unit from the total cost per unit based on either the highest or lowest observation of the cost driver performing a regression analysis on the associated cost and cost driver database 3) using the difference between the highest and lowest observations of the cost driver as denominator and the difference between costs associated with the highest and lowest observations of the cost driver as nominator using the difference between the highest and lowest observations of the cost driver as nominator and the difference between costs associated with the highest and lowest observations of the cost driver as denominator QUESTION 20 Finished goods can be classified as... 1) an asset 2) a liability 3) an expense 4) an income