Question 14

The accounting system which records production costs for a batch of identical goods is:

Question 14 options:

a)	Custom costing

b)	Process costing

c)	Job costing

d)	Batch costing

Question 15

Accounting for professional service firms differs from manufacturing mainly because:

Question 15 options:

a)	There is no inventory in services

b)	There are no materials used in services

c)	Services are intangible

d)	Services are heterogeneous

Question 17

Four products are manufactured in a labor-intensive process by XYZ:

	Alpha	Beta	Gamma	Delta
Selling price per unit	100	150	90	200
Variable costs per unit	45	85	30	110
Labor hours	2	4	3	4

Assuming an overall capacity constraint, what is the ranking order of products for XYZ to produce to maximize its profitability:

Question 17 options:

a)	Beta, Gamma, Alpha, Delta

b)	Delta, Beta, Gamma, Alpha

c)	Gamma, Alpha, Delta, Beta

d)	Alpha, Delta, Gamma, Beta

Question 18

Use the following information to answer Questions 18 and 19:

Four products are manufactured by MNO:

	Maxi	Midi	Mini	Micro
Selling price per unit	600	400	300	250
Variable labor costs per unit ($40/hour)	250	120	140	90
Variable material costs per unit	275	250	100	110

Each of the four products takes two production hours. Assuming production hours as the overall capacity constraint, the ranking order of products for MNO to maximize its profitability is:

Question 18 options:

a)	Maxi, Midi, Mini, Micro

b)	Micro, Midi, Maxi, Mini

c)	Micro, Mini, Maxi, Midi

d)	Maxi, Mini, Micro, Midi

Question 19

Applying the theory of constraints and a throughput accounting approach, and assuming labor to be the bottleneck constraint, the ranking order of products for MNO to maximize its profitability within the labor constraint is:

Question 19 options:

a)	Maxi, Mini, Micro, Midi

b)	Micro, Midi, Maxi, Mini

c)	Maxi, Midi, Mini, Micro

d)	Micro, Mini, Maxi, Midi