Question 6

An adverse material price variance is often attributed to:

(1) Government impose an import quota on the materials required for production

(2) An unexpected raw material shortage

(3) Labour unions campaigning for better labour welfare

A (1) and (2)

B (1) and (3)

C (2) and (3)

D All of the above

Question 7

Budgeting is a process that is often challenged by many variables and factors, except:

A Lack of staff buy in

B Lack of accurate budget data

C Adverse economic outlook

D Absence of communication within the organisation

Question 8

A favourable labour efficiency variance may be due to:

A Labour wages increased over the year

B Labour union had campaigned more frequently for labour rights

C Government had approved new laws regarding improved labour welfare

D Supply of labour is more than demand

Question 9

Which of the following statements is not false?

(i) Market skimming charges high initial prices for a new innovative product.

(ii) Penetration pricing charges low initial prices to gain rapid acceptance of a new product.

A Both (i) and (ii)

B (i) only

C None of the above

D (ii) only

Question 10

Which of the following is a correct statement of accounting for by-products?

A By-products costs are apportioned based on physical units method

B By-products share the same unit cost as joint products

C By-products were part of the strategic plan

D By-products are incidental to the production process