QUESTION 1 (10 marks) (12 minutes) Various managerial accounting and finance terms: Product cost Under absorption Marketing and distribution costs Suppliers' Prime costs Time series analysis Credit period Marginal costing Economic order quantity (EOQ) Strategic plan Conversion costs Over absorption Fixed cost Operational plan Variable cost Absorption costing Cross-sectional analysis Collection policy Just-in-time (JIT) system Lenders' REQUIRED: Choose the term above that most appropriately complete the following statements and write only the selected term against the statement number. For example: 1.1 Fixed cost 1.1 1.2 1.3 1.4 1.5 1.6 Direct material and direct labour are combined to form per unit will remain unchanged, regardless of the number of units produced. If the actual cost exceeds the absorbed costs, we say there was an of overheads. _treats only variable cost as product cost. In order to ensure compliance with IFRS, must be treated as period costs and expensed in the period in which they are incurred. interest is to assess the liability of the company to pay interest on loans and to repay loans. The is the quantity of inventory that should be ordered every time an order is placed so that the total inventory cost is minimised. compares the performance of the company with industry standards. refers to the methods that the company uses to collect accounts that are past the due date. The company's usually contains a mission, vision and value statement (10) 1.7 1.8 1.9 1.10