remaining 2 A benefit sacrificed by taking one course of action instead of the most profitable alternative course of action is known as which one of the following? (3 marks) Select one alternative: O Sunk cost Opportunity cost Relevant cost Incremental cost Reset Maximum marks: 3 maining 4 What is the name given to a budget which has been prepared by building on a previous period's budgeted or actual figures? (3 marks) Select one alternative: Incremental budget Flexible budget Zero based budget Functional budget Maximum marks: 3 Reset 5 anules remaining The purpose of a flexible budget is to: (3 marks) Select one alternative: Compare actual and budgeted results at virtually any level of production Reduce the total time in preparing the annual budget Allow management some latitude in meeting goals Eliminate cyclical fluctuations in production reports by ignoring variable costs Maximum marks: 3 Reset 15:3 224125 m, 55 minutes remaining 8 The following statements have been made about traditional absorption costing and activity based costing. 1. Traditional absorption costing may be used to set prices for products, but activity based costing cannot 2. Traditional absorption costing tends to allocate too many overhead costs to low-volume products and not enough overheads to high-volume products 3. Implementing ABC is expensive and time consuming Which of the above statements is/are true? (3 marks) Select one alternative: o 1 only 2 only 3 only 1 and 2 only Maximum marks: 3 Reset 15:31 25 minutes remaining 10 Moette Limited's market share has improved two percentage points to 20% but the overall market had contracted by 5% in the same period. The budgeted sales were 504.000 units and standard contribution was 12 per unit. The sales market size variance is: (3 marks) Select one alternative: 1,680,000 Fav 1,680,000 Adv 302.400 Adv 302,400 Fav Reset Maximum marks 3 15:31 ENG