QUESTION 17

1. In product costing, overhead costs are:

   		economically identifiable with the cost object.
   		not economically identifiable with the cost object.
   		always fixed costs.
   		all of the options

1 points

QUESTION 18

1. All of the statements regarding Activity-Based Costing are correct, except:

   		it is costlier than alternative systems.
   		it provides better information for decision-making.
   		it provides more accurate product costs.
   		it is used by the majority of businesses in Australia.

1 points

QUESTION 19

1. Use the information below to answer the following questions. Jan runs a successful hairdressing salon in the CBD. The type of costs incurred in providing services to clients are: (i) Hairdressers' salaries (ii) Shampoo and Conditioner (no individual records kept of usage) (iii) Colour and Perm Solutions (individual records kept of usage per client) (iv) Electricity and Gas (v) Depreciation of equipment Refer to the information above. The direct costs incurred in providing a haircut only (no other service) to a client would be:

   		all costs mentioned above.
   		hairdresser salary, shampoo and conditioner and electricity and gas.
   		hairdresser salary.
   		hairdresser salary, shampoo and conditioner.

1 points

QUESTION 20

1. Nugyen Pty Ltd estimates its overhead costs will be $300,000 for the coming year and it will use 20,000 direct labour hours over the same period. How much overhead will be charged to a job that uses 23 direct labour hours?

   		$23
   		$120
   		$345
   		$15