QUESTION 1

1.Management reports are

1.

used for decision making both inside and outside the organisation

2.

used by financial analysts

3.

used for decision making primarily outside the organisation

4.

used for decision making primarily inside the organisation

0.5 points

QUESTION 2

1.Decision quality can best be increased by

using the most sophisticated technology

collecting better information

collecting less information

thinking harder

0.5 points

QUESTION 3

1.The revenue budget

provides estimates of volumes, selling prices and total revenues

is the last budget to be prepared

matches revenues and expenses

all of the above

0.5 points

QUESTION 4

1.Which of these would not be part of the primary activities in a typical value chain at an organisational level?

marketing and customer support

production

design

Human Resource Management

0.5 points

QUESTION 5

1.The activity which is non-value adding is

purchasing raw materials for production

advertising the company's products

none of the activities is regarded as non-value adding

moving finished goods around in the storeroom

0.5 points

QUESTION 6

1.Identify the cost object?

product

customer

all of the above

department

0.5 points

QUESTION 7

1.Which of the following is the best example of an internal report that might come from an organisation's information system?

Income tax returns

Environmental Protection Agency regulatory report

Credit rating agency report

Cash flow plan

0.5 points

QUESTION 8

1.Identify the irrelevant information in the following scenario.

Eve is choosing between two part time jobs. Job A offers a high hourly wage but is located out of town and she will have to pay for public transport to get there. Job B is based locally and Eve can walk from home. The second job pays a lower hourly rate but there is more opportunity to pick up extra hours. The first job has a set number of hours. Last month Eve purchased a monthly gym pass for $80 for a gym located near Job B.

Cost of the gym pass.

Public transport cost.

Hourly pay rates.

Number or working hours.

0.5 points

QUESTION 9

1.Frank is considering transportation modes to a client's office. He can drive his own car, at an incremental cost of $0.75 per kilometre, or take a company car. If he takes his own car, he can be reimbursed $0.55 per kilometre. If Frank makes his decision strictly from his personal economic point of view, what is the relevant net cost associated with driving his own car?

$0.75

$0.00

$0.55

$0.20

0.5 points

QUESTION 10

1.All of the following are true of rolling budgets, except

they reflect planning changes through future periods, often the next 12 to 18 months

they are usually prepared monthly or quarterly

they set targeted cost reductions over time

they provide managers with more current budget targets than traditional budgets

0.5 points

QUESTION 11

1.The distinction between direct costs and indirect costs depends on their traceability to:

an activity.

a product.

a cost object.

a manufacturing operation.

0.5 points

QUESTION 12

1.If the cost object is the cosmetics department of a large department store which of the following is a direct cost?

Advertising costs for the store's annual stock take sale.

Brand specific cosmetic product training.

Security staff wages for the store.

The payroll department manager's yearly bonus payment

0.5 points

QUESTION 13

1.The reason for allocating indirect costs is:

all of the options listed.

to set product prices.

to comply with external reporting requirements.

to help with making decisions about which products to produce.

0.5 points

QUESTION 14

1.The formula for calculating a predetermined indirect cost rate is:

actual indirect costs/budgeted usage of the cost driver.

budgeted indirect costs/actual usage of the cost driver.

actual indirect costs/actual usage of the cost driver.

budgeted indirect costs/budgeted usage of the cost driver.

0.5 points

QUESTION 15

1.Mollie's Lollie Manufacturer has budged total overhead to be $269 500 and the expected cost driver is 55 000 machine hours. Last year actual machine hours was 50 000. The predetermined indirect cost rate is:

$0.20

$1.10

$4.90

$5.39

0.5 points

QUESTION 16

1.Oasia Ltd sells ceramic gifts sets. Each gift set has a selling price of $54. Variable costs per set are $28. The contribution margin per set is:

$54

$28.

unable to be determined from the information provided.

$26.

0.5 points

QUESTION 17

1.The profit equation can be expressed as:

Profit = [Selling Price - Variable Costs *Q] - Fixed Costs

Profit = [Selling Price - Variable Costs) * Q] - Fixed Costs

Profit = [Selling Price - Fixed Costs) * Q] - Variable Costs * Q

Profit = [Selling Price + Fixed Costs) * Q] - Variable Costs

0.5 points

QUESTION 18

1.The breakeven point can be defined as:

the point at which revenue equals total fixed and variable costs.

The point at which revenue equal variable costs.

the level of operations at which the firm earns a profit.

the point at which revenue equal fixed costs.

0.5 points

QUESTION 19

1.The breakeven equation can be expressed as:

Fixed Costs / Contribution Margin per unit and Fixed Costs / (Sales Price per unit - Variable costs per unit)

Fixed Costs / (Sales Price per unit - Variable costs per unit)

Fixed Costs / Profit

Fixed Costs / Contribution Margin per unit

0.5 points

QUESTION 20

1.

31%

23%

46%

Cannot be determined

QUESTION 1

1.Management reports are

1.

used for decision making both inside and outside the organisation

2.

used by financial analysts

3.

used for decision making primarily outside the organisation

4.

used for decision making primarily inside the organisation

0.5 points

QUESTION 2

1.Decision quality can best be increased by

using the most sophisticated technology

collecting better information

collecting less information

thinking harder

0.5 points

QUESTION 3

1.The revenue budget

provides estimates of volumes, selling prices and total revenues

is the last budget to be prepared

matches revenues and expenses

all of the above

0.5 points

QUESTION 4

1.Which of these would not be part of the primary activities in a typical value chain at an organisational level?

marketing and customer support

production

design

Human Resource Management

0.5 points

QUESTION 5

1.The activity which is non-value adding is

purchasing raw materials for production

advertising the company's products

none of the activities is regarded as non-value adding

moving finished goods around in the storeroom

0.5 points

QUESTION 6

1.Identify the cost object?

product

customer

all of the above

department

0.5 points

QUESTION 7

1.Which of the following is the best example of an internal report that might come from an organisation's information system?

Income tax returns

Environmental Protection Agency regulatory report

Credit rating agency report

Cash flow plan

0.5 points

QUESTION 8

1.Identify the irrelevant information in the following scenario.

Eve is choosing between two part time jobs. Job A offers a high hourly wage but is located out of town and she will have to pay for public transport to get there. Job B is based locally and Eve can walk from home. The second job pays a lower hourly rate but there is more opportunity to pick up extra hours. The first job has a set number of hours. Last month Eve purchased a monthly gym pass for $80 for a gym located near Job B.

Cost of the gym pass.

Public transport cost.

Hourly pay rates.

Number or working hours.

0.5 points

QUESTION 9

1.Frank is considering transportation modes to a client's office. He can drive his own car, at an incremental cost of $0.75 per kilometre, or take a company car. If he takes his own car, he can be reimbursed $0.55 per kilometre. If Frank makes his decision strictly from his personal economic point of view, what is the relevant net cost associated with driving his own car?

$0.75

$0.00

$0.55

$0.20

0.5 points

QUESTION 10

1.All of the following are true of rolling budgets, except

they reflect planning changes through future periods, often the next 12 to 18 months

they are usually prepared monthly or quarterly

they set targeted cost reductions over time

they provide managers with more current budget targets than traditional budgets

0.5 points

QUESTION 11

1.The distinction between direct costs and indirect costs depends on their traceability to:

an activity.

a product.

a cost object.

a manufacturing operation.

0.5 points

QUESTION 12

1.If the cost object is the cosmetics department of a large department store which of the following is a direct cost?

Advertising costs for the store's annual stock take sale.

Brand specific cosmetic product training.

Security staff wages for the store.

The payroll department manager's yearly bonus payment

0.5 points

QUESTION 13

1.The reason for allocating indirect costs is:

all of the options listed.

to set product prices.

to comply with external reporting requirements.

to help with making decisions about which products to produce.

0.5 points

QUESTION 14

1.The formula for calculating a predetermined indirect cost rate is:

actual indirect costs/budgeted usage of the cost driver.

budgeted indirect costs/actual usage of the cost driver.

actual indirect costs/actual usage of the cost driver.

budgeted indirect costs/budgeted usage of the cost driver.

0.5 points

QUESTION 15

1.Mollie's Lollie Manufacturer has budged total overhead to be $269 500 and the expected cost driver is 55 000 machine hours. Last year actual machine hours was 50 000. The predetermined indirect cost rate is:

$0.20

$1.10

$4.90

$5.39

0.5 points

QUESTION 16

1.Oasia Ltd sells ceramic gifts sets. Each gift set has a selling price of $54. Variable costs per set are $28. The contribution margin per set is:

$54

$28.

unable to be determined from the information provided.

$26.

0.5 points

QUESTION 17

1.The profit equation can be expressed as:

Profit = [Selling Price - Variable Costs *Q] - Fixed Costs

Profit = [Selling Price - Variable Costs) * Q] - Fixed Costs

Profit = [Selling Price - Fixed Costs) * Q] - Variable Costs * Q

Profit = [Selling Price + Fixed Costs) * Q] - Variable Costs

0.5 points

QUESTION 18

1.The breakeven point can be defined as:

the point at which revenue equals total fixed and variable costs.

The point at which revenue equal variable costs.

the level of operations at which the firm earns a profit.

the point at which revenue equal fixed costs.

0.5 points

QUESTION 19

1.The breakeven equation can be expressed as:

Fixed Costs / Contribution Margin per unit and Fixed Costs / (Sales Price per unit - Variable costs per unit)

Fixed Costs / (Sales Price per unit - Variable costs per unit)

Fixed Costs / Profit

Fixed Costs / Contribution Margin per unit

0.5 points

QUESTION 20

1.

31%

23%

46%

Cannot be determined