Question 1

Which of the following is a disadvantage of bottom up approach to budgeting?

A Motivation improves

B Time consuming

C Better commitment by staff

D Budgets are more realistic

Question 2

A companys order costs are $30 per order and holding costs are $1 per unit per year. Annual demand is estimated at 1,500 units. Calculate the economic order quantity.

A 400 units

B 350 units

C 325 units

D 300 units

Question 3

The reciprocal method of secondary apportionment from support centres to production centres requires the scenario of:

A Support Centre X supports Support Centre Y only

B Support Centre Y supports Support Centre X only

C Both Support Centres support one another

D Both Production Centres support one another

Question 4

The following are all classified as a production overhead cost, except:

A Depreciation of the bottling plant

B The factory rent

C The finance managers salary

D The plastic cost of the bottles

Question 5

Which of the following is an example of a direct labour cost?

A Wages of a storekeeper in a manufacturing firm

B Wages of an accountant in Price Waterhouse Coopers LLC

C Wages of a legal officer in ABC Education Institute

D Construction supervisor in Bazzil Construction Pte Ltd