Question 11

Plastic Company Ltd, a company that produces drainage pipes has calculated the breakeven quantity as 1,600 drainage pipes. The management accountant, Ahmad

Zachariah has suggested that the company must produce below the 1600 units to make any profit. Indicate whether the management accountants suggestion is right or wrong.

Question 12

In the production of a wooden office chair, give two examples of the cost that are considered as prime cost.

Question 13

The control technique that reports variances by comparing actual costs to pre-set standards thereby facilitating action through management by exception is known as

Question 14

The management accountant of Office Supplies Ltd, John Johnson considers the accounting department, production department, and selling department of Office Supplies Ltd as cost centres. Indicate whether John Johnson is right or wrong.