Please Answer Multiple Choice Questions from 'Cost & Management Accounting by Colin Drury' chapter/part 16-18 below, give the short description for each chosen answer if necessary . thanks :)

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Drury MCA8 Part 16

1. Limiting factor analysis refers to: a. A situation where a business tries to minimize its costs b. A situation where a business tries to substitute scarce resources to increase production c. A situation where a business tries to maximize contribution subject to resource constraints d. A situation where a business produces products that use the smallest amounts of the scarce resource 2. Due to short supply, a company must buy sub standard material at an inflated price. What is the most likely consequence of this? a. An adverse material usage variance and a favourable labour efficiency variance b. An adverse material price variance and a favourable labour efficiency variance c. An adverse material usage variance and an adverse labour efficiency variance d. An adverse material price variance and a favourable labour price variance 3. The shadow price of a constraint is: a. The fall in contribution by reducing the constraint by one unit b. The increase in contribution by increasing the effective constraint by one unit c. The increase in the level of other constraints that will cause the objective function to stay the same d. The fall in contribution by increasing the constraint by one unit 4. All of the following are assumptions of linear programming except: a. There must be a single objective function b. The constraints must be linear c. There must be two or more decision variables d. The objective must be to maximize a given output 5. In determining the mix of production where there is one scarce resource we would base our decision on: a. Producing the product that earns the highest unit contribution b. Producing the product that generate the most sales revenue c. Producing the product that earns the highest unit profit d. Producing the product that earns the highest contribution per unit of limiting factor 6. The graphical approach to dealing with problems involving scarce resources may be used when: a. There are several products being made and there are several scarce resources b. There are two products being made and there are several scarce resources c. There is one product being made and there are several scarce resources d. There are two products being made and there are unlimited resources 7. Using the graphical approach to dealing with scarce resources, the point in the feasible region that will maximize the objective function will be: a. The point on the axis where the objective function is furthest away from the origin b. The point one a single constraint line that is furthest away from the origin c. The point at which the objective function is furthest away from the origin d. The point at which all of the constraint lines cross 8. Which of the following would most directly lead to the maximization of profits for a business: a. Maximization of cash flows c. Maximization of sales revenue b. Maximization of contribution d. Minimization of costs 9. If a material is used up in production and no alternative materials are available, the cost that should be considered in the pricing of a contract that includes the material is: a. Market price of the material b. The opportunity cost from switching the material from existing contracts c. The purchase price of the materials d. The market price that the material could be sold for 10. In an effort to achieve short-run profit maximization, limited resources should be allocated in the manner which: a. maximizes contribution per unit of constraining factor. b. maximizes total revenue per unit of the non-constraining factors. c. maximizes tax breaks. d. minimizes total costs. 11. The single most important constraint in the retail industry is: a. manpower c. inventory b. space d. overhead. 12. Breukelen BV manufactures two different products: Gez and Gel. The company has 100 kilos of raw materials and 300 direct labour-hours available for production. The time requirements and contribution margins per unit are as follows:

Gez Gel Raw materials per unit (kilos) 1 2 Direct labour-hours per unit 4 2 Contribution margin per unit