Which of the following BEST describes target costing? Setting a cost for the use in the calculation of variances Setting a selling price for the company to aim for in the long run O Setting a price by adding a desired profit margin to a production cost Setting a cost by subtracting a desired profit margin from a competitive market price Information relating to two processes (F and G) was as follows: Process F G Normal loss as % of input 8 5 Input (litres) 65,000 37,500 Output (litres) 58,900 35,700 For each process, was there an abnormal loss or an abnormal gain? Abnormal loss Abnormal gain Process F Process G The following budgeted information relates to a manufacturing company for next period: Production Sales Units 14,000 12,000 Fixed production costs Fixed selling costs 63,000 12,000 The normal level of activity is 14,000 units per period. Using absorption costing the profit for next period has been calculated as $36,000. What would be the profit for next period using marginal costing? $ The Eastland Postal Service is government-owned. The government requires it to provide a parcel delivery service to every home and business in Eastland at a low price which is set by the government. Express Couriers Co is a privately owned parcel delivery company that also operates in Eastland. It is not subject to government regulation and most of its deliveries are to large businesses located in Eastland's capital city. You have been asked to assess the relative efficiency of the management of the two organisations. Which of the following factors should NOT be allowed for when comparing the ROCE of the two organisations to assess the efficiency of their management? Differences in geographic areas served Differences in workforce motivation Differences in prices charged Differences in objectives pursued Under which sampling method does every member of the target population have an equal chance of being in the sample? Cluster sampling Random sampling Systematic sampling Stratified sampling A company manufactures and sells one product which requires 8 kg of raw materials in its manufacture. The budgeted data relating to the next period are as follows: Sales Opening inventory of finished goods Closing inventory of finished goods Units 19,000 4,000 3,000 kg 50,000 53,000 Opening inventory of raw materials Closing inventory of raw materials What is the budgeted raw material purchases for next period? kg Up to a given level of activity in each period the purchase price per unit of a raw material is constant. After that point, a lower price per unit applies both to further units purchased and also retrospectively to all units already purchased. Which of the following graphs depicts the total cost of the raw materials for a period? Activty o Activity 0 Activity O Activy