THIS QUESTION CONSISTS OF TEN (10) MULTIPLE-CHOICE QUESTIONS OF TWO (2) MARKS PER QUESTION. FOR EACH QUESTION, SIMPLY WRITE DOWN THE NUMBER OF THE QUESTION TOGETHER WITH THE CORRECT OPTION (3, b, c, d OR 9) IN YOUR ANSWER SCRIPT. 1. A focus on is NOT a focus of Management Accounting. a. b c d 2.Wh a 3.Wh a. b. timely and relevant information used in decision-making (rather than accurate and verifiable information) . the possible financial consequences of future plans on the whole organisation . compliance with legislation and reporting standards . compliance with ethical and sustainability standards ich one of the following steps is NOT part of the decision-making process? . Identify the issue requiring a management decision and define the objectiveis to be achieved. Identify possible alternative courses of action. Collect relevant information about the consequences of the best or preferred alternative only. Make a decision, by selecting the preferred alternative. Implement the decision and monitor to evaluate actual outcomes. ich one of the following statements is incorrect with regard to cost accounting? Cost accounting is a sub-set of management accounting. Cost accounting is focused on cost computation, cost control, and overall cost reduction in the organisation. Cost accounting involves a process of measuring, analysing, and reporting both financial as well as non-financial information for both management accounting and financial accounting. Cost accounting involves a process of measuring, analysing, and reporting both financial as well as non-financial information for management accounting only. 4. Consider the following statements with regard to Corporate social responsibility (CSR): iv. Corporate social responsibility refers to the involvement of corporates in social projects to help advance the communities in which they operate. Corporate social responsibility requires organisations to be good corporate citizens that conduct their business ethically. Corporate social responsibility requires organisations to go beyond the minimum legal requirements to protect the environment and contribute to social welfare. The effect of corporate social responsibility is that corporations no longer pursue only wealth creation for their shareholders. Which one of the following combinations of statements is correct? a. (i), (ii) and (iii) b. (i), (ii), (iii) and (iv) 0. (ii), (iii) and (iv) d. (i), (iii) and (iv) 5. Cost-volume-profit (CVP) analysis can be used as a sensitivity analysis technique to determine what the effect of certain internal decisions of management or external changes will be on profits, break-even and margin of safety figures. If all other factors were kept constant, the following will lead to an increase in profit: a. Decrease in selling price per unit. b. Decrease in sales volumes. c. Decrease in fixed costs. d. Increase in variable costs per unit. 6. Which one of the following statements is NOT an assumption of CVP analysis: a. All costs, manufacturing, administrative as well as marketing and selling costs are considered and can be separated into either fixed costs or variable costs. The analysis is always made within the relevant range. All the units that are manufactured are sold. CVP analysis applies to long-term planning only. as? 7. Which one of the following would be classified as a fixed cost? a. The routine, monthly maintenance of machinery b. The wood used in the production of furniture. 0. The screws used in the production of a machine d. The piecemeal wages paid to workers assembling a product. 8. Which one of the following statements is correct, if the absorption costing method is applied? a. Net income fluctuates in direct proportion with changes in sales volume. b. Fixed production and xed selling costs are considered to be product costs. c. Variable selling expenses are included in product costs. d. Unit product costs can change as a result of changes in the number of units manufactured. 9. Which one of the following statements is correct in respect of the income statement of a company using direct costing and using absorption costing when there is neither opening nor closing inventory? a. Absorption costing will result in higher net prot. b. Direct costing will result in higher net profit. c. Both methods will result in the same net prot. d. There will be a negligibly small difference in net profit between the two methods. 10.Cream Ltd is a manufacturer of ice cream. The company has the following information available: Sales price per unit R15 Direct material per unit R7,50 Direct labour per unit R5 Fixed admin and overhead cost R30 000 Current monthly profit R12 000 What will the breakeven sales units be? a. 12 000 b. 42 000 c. 18000 d. 30 000