Question 1 1. A firm's account would normally be classified into the following category : a) fixed cost, b) stepped fixed cost, c) semi- variable cost, d) variable cost, e) none of the above 9. An order for new stock should be issued at the following level : (a) 1050 (b) 1330 (c) 1710 (d) 1750 (e) 1810

10. The maximum stock level is: (a) 1750 (b) 2860 (c) 3460 (d) 5210 (e) 6100

The following information refers to questions 9 and 10: Average sales 75 per day Maximum sales 95 per day Minimum sales 50 per day Lead time 12 18 days Re oder level 1750

The following information refers to questions 17 - 20: Thataone Ltd supplied the following information : Sales revenue 65 000 Direct material 21 500 Direct labour 16 000 Factory supervisor's salary 7000 Factor rent 6000 Sales office expenses 1000 Indirect material 2000 Administrative office rent 3000 Factory insurance 2000 Depreciation of factory equipment 3000

17. The amount of manufacturing overheads is: a) 20 000 (b) 36 000 (c) 37 500 (d) 57 500 (e) 47 000 18. The amount of prime cost is: (a) 20 000 (b) 36 000 (c) 37 500 (d) 57 500 (e) 39 000

19. The amount of conversion cost is: (a) 20 000 (b) 36 000 (c) 37 500 (d) 57 500 (e) 39 000

20. The amount of gross income is : (a) 3000 (b) 3 500 (c) 5 500 (d) 7 500 (e) 9 000