Question 17

Team Vero bakery intends to make a profit of GHC30,000 for the next accounting period. The companys direct cost per loaf of bread is GHC8.00. Variable non production overhead per unit is GHC2.00. Period cost is estimated as GHC5,000; and a loaf of bread is sells at GHC15.00.How many loaves of bread should the company sell to achieve the target profit (assume no tax)?

Select one:

a. 714 loaves

b. 1,000 loaves

c. 5,000 loaves

d. 7,000 loaves

Question 18

Which of the following is often regarded as a principal budget factor?

Select one:

a. Production volume

b. Master Budget

c. Sales volume

d. Overheads

Question 19

I am a budgeting approach that seeks to build broad-base consensus from my stakeholders. Through effective budget hearing procedures, I am able to capture justified input of my stake holders. Who am i?

Select one:

a. Zero based budgeting style

b. Top-to-bottom budgeting style

c. Flexed Budgeting style

d. Negotiated budgeting style

Question 20

Mama Cee saloon is a start- up saloon. The saloons direct cost per service unit is Ghc25. Period cost is estimated as GHC10,000. Selling price for each service unit is 40.00. How many service units should Comfort hair saloon render for the saloon to break even (assume no tax)?

Select one:

a. 250 loaves

b. 400 service units

c. 500 service units

d. 667 service units

Question 21

Naomi sells standardized shoes. She expect to make annual after tax profit of GHC30,000. She sells a pair of shoe for GHC250. She pays her online marketer a commission of 10% of each shoe sold. The cost of a pair of shoe is GHC145. She pays annual period cost of GHC10,000. How many pair of of shoes should she sell to meet her profit target? (Assume tax rate of 25%)

Select one:

a. 600 pair of shoes

b. 625 pair of shoes

c. 650 pair of shoes

d. 675 pair of shoes