Question 11

Which of the following statements relate to life-cycle costing are true?

(i) Forecast a products profitability over its entire life.

(ii) Considers a products total costs over its entire life.

(iii) Focuses on the production of monthly profit statements throughout a products life.

A (i) only

B (i) and (ii) only

C (i) and (iii) only

D (i), (ii) and (iii)

Question 12

Which of the following statements about process losses are correct?

(i) Units of normal loss should be valued at full cost per unit.

(ii) Units of abnormal loss should be valued at their scrap value.

A (i) only

B (ii) only

C Both of them

D Neither of them

Question 13

The following statements refer to strategic planning:

(i) It is concerned with quantifiable and qualitative matters.

(ii) It is mainly undertaken by middle management in an organisation.

(iii) It is concerned predominantly with the long term.

Which of the statements are correct?

A (i) and (ii) only

B (i) and (iii) only

C (ii) and (iii) only

D (i), (ii) and (iii)

Question 14

To cope with downturn in sales volume, an organization could consider using a ___________ in its cost structure:

A Lower financial gearing

B Lower operational gearing

C Higher breakeven

D Lower Contribution leverage

Question 15

Which of the following cost classifications can be applied to the straight-line depreciation of office equipment?

(i) Indirect

(ii) Period

(iii) Production

(iv) Variable

A (i) and (ii) only

B (i) and (iv) only

C (ii) and (iii) only

D (iii) and (iv) only