Please answer these MCQs

1 Pancake Ltd uses 15,000 litres of maple syrup each year. The cost of holding its maple syrup inventory is $0.80 per litre per year. The cost of ordering the syrup is $120 per delivery. The firm uses maple syrup at a constant rate throughout the year. The economic order quantity for maple syrup is: Select one: a. 2,121 lites b. 200 litres c. 2,372 lites d. 1,500 litres 2 Calculate the operating cash cycle the accounts payable settlement period is 39 days, the inventory turnover period is 75 days and the accounts receivable settlement period is 43 days. Select one: a 71 days b. 82 days c. 79 days d. 118 days 3. Which changes would increase a firm's net working capital, if all else remained constant? Select one: a. Increase in accounts payable b. decrease in inventories c.decrease in cash d. increase in accounts receivable 4. Because of uncertainty of demand, a firm may choose to hold an additional amount of inventory called: Select one: A safely stock B. transit stock C. reorder stock A company wishes to reduce the amount of working capital it requires to finance its operations. Which of the following would be the least effective way of reducing working capital requirements? Select one: A. Refuse to sell on credit to any customer B. Offer a discount for early payment by debtors. C. Increase the payment time for accounts payable. D. Increase the efforts to collect overdue debtor's accounts. 2. Improving cash flow in relation to debtors and accounts payable respectively, requires: Select one: A. speeding up collections and slowing payments. B. speeding up collections and speeding up payments. C. slowing collections and slowing payments. D. slowing collections and speeding up payments. 3. Which of these is not a cost of holding insufficient levels of inventory? Select one: A. Loss of sales. B. Extra inventory storage costs. C. High transportation costs on rush deliveries of inventory. D. Lost production because of shortages of raw materials. 4. A budget system that always provides plans for a full 12 months into the future is known as aan): Select one: a. advance budget b. future budget c. yearly budget d. rolling budget 5. Sales in December of this year were $900,000. Projected sales for the first 3 months of next year are: January $800,000 February $750,000 March $840,000 Sales are made 20% on Cash and 80% on credit. Customers pay their accounts one month after the sale. Calculate total cash receipts expected for the month of February Select one: a $750,000 b. $150,000 c. $640,000 d. $790,000 6. Use the information below to answer the following question Flexed Budget for October Actual for October Output 40,000 units 40,000 units Sales $500,000 $400,000 Raw materials $100,000 $88,000 Labour $250,000 $180,000 Overheads $325,000 $375,000 The adverse (unfavourable) sales variance of $100,000 is best explained by: Select one: a. an increase in the expenses incurred by the business in the period b. the sales manager and sales team not making the target level of sales c. it is not possible to tell from this information d. the price the units were sold for was less than budgeted 7. If actual sales are $95,000 and budgeted sales are $86,000 and actual advertising paid is $7,100 and budgeted advertising is $8,300, the variances are respectively are: Note:F - Favourable, A - adverse (unfavourable) Select one: a. $9,000A; $1,200F b. $9,000F; $1.200F c. $9,000F: S1200A d. $9,000A: $1,200A 8 MircroSystems had the following estimates for the six months ending 31 December 2020. Cash balance 17.20 (Overdraft) ($8,150) Cash receipts from commissions $85,000 Cash payments for expenses (82,300) Proceeds from the sale of a motor vehicle 6,500 Borrowing 5,000 Depreciation on equipment (2,600) The estimated cash balance at 31 December 2020 is: Select one: A. $3,950 (overdraft). B. $3,450 C. $2,100 (overdraft) D. $6,050. 9. An unfavourable variance occurs when: Select one: a. actual sales are lower than budgeted sales. b. actual costs are higher than budgeted costs. c. budgeted costs are lower than actual costs. d. all of the options are correct. 10. Calculating budget figures from scratch or zero-base helps managers to overcome the problem of: Select one: a. teamwork. b. budget slack. c. short deadlines. d. budget cost. 11. Which of the following could be the cause of a favourable materials price variance? Select one: A. The price of materials in the original budget was set too high. B. A discount on the purchase of materials. C. Well-trained production workers. D. Both A and B