Which of the following appears in the cash budget?

1. interest payments
2. purchase of equipment on credit
3. depreciation
4. all of the above

Question 2

Which of the following budgets would not form part of the master budget?

1. Cash budget
2. Statement of profit or loss
3. Sales budget
4. Statement of financial position

Question 3

The PQR company is planning to sell a new product which they will sell for 65 each. Fixed costs are 30,000 per annum; variable costs are 40 per unit. How much do they need to sell to make a profit of 25,000?

1. 2,200 units
2. 1,200 units
3. 750 units
4. 1,000 units

Question 4+--+

1. Sales budget
2. Statement of financial position

Question 5

Fixed cost per unit is 9 when 20,000 units are produced and 6 when 30,000 units are produced. What is the total fixed cost when nothing is produced?

1. 180,000
2. 120,000
3. 270,000
4. 15

Question 6

Which of the following is NOT an assumption associated with marginal costing and break-even analysis?

1. In marginal costing and break-even analysis it is assumed that not all costs can be classified as fixed or variable.
2. In marginal costing and break-even analysis it is assumed that cost behaviour is linear.
3. In marginal costing and break-even analysis it is assumed that variable costs per unit remain constant.
4. In marginal costing and break-even analysis it is assumed that fixed costs remain constant.

Question 7

Which of the following costs would be included as part of factory overhead?

1. depreciation of plant equipment
2. paint used for product finish
3. depreciation on the corporation's office building
4. paper used in the production of books

Question 8

Jamal is arranging for a party to be held in the students' union. The use of the hall will be free but security costs of 350 will have to be met. The cost of the main band will be 3,000 and the supporting band will cost 400. Tickets will be priced at 16.50 each. On arrival, every ticket holder will be given a bottle of water, worth 1.50 per bottle. If Jamal sells 400 tickets as he anticipates, what profit will he make?

1. 2,850
2. 2,250
3. 6,600
4. 3,200

Question 9

Which of the following is not considered to be a benefit of activity-based costing?

1. More accurate product costs
2. More detailed understanding of what drives cost
3. Inclusion of non-manufacturing costs
4. Reduced complexity of calculating costs

Question 10

Which of the following statements are NOT true?

1. Cash sales are made when cash is received at the same time as the goods or services are delivered.
2. Credit sales are made when the payment is received after the goods or services have been delivered.
3. Cash purchases are those purchases for which cash payment will be made at the same time as the goods or services are received.
4. Credit purchases are where the goods or services have not yet been received by the business and payment has not yet been made.