Which of the following is correct?

Select one:

a. Qualitative data is generally non-numerical information

b. Information can only be extracted from external sources

c. Operational information gives details of long-term plans only

W. Ltd makes leather purses. It has drawn up the following budget for its next financial period:

Selling price per unit $11.60

Variable production cost per unit $3.40

Sales Commission $5% of selling price

Fixed production costs $430,500

Fixed selling and administration cost $198,150

Sales 90,000 units

The marketing manager has indicated that an increase in the selling price to $12.25 per unit would not affect the number of units sold, provided that the sales commission is increased to 8% of the selling price. The changes will cause the break-even point ( to the nearest whole number ) to be

Select one:

a. 71,033 units

b. 76,016 units

c. 79,879 units

d. 87,070 units

A company absorbs overheads on machine hours which were budgeted at 11,250 with overheads of $258,750. Actual results were 10,980 hours with overheads of $254692. Overheads were:

Select one:

a. Under-absorbed by $4058

b. Over-absorbed by $4058

c. Under-absorbed by $2152

d. Over-absorbed by $2152

The manager of a profit center is responsible for which of the following? (i) Revenues of the centre, (ii) Cost of the centre, (iii) Assets employed in the centre

Select one:

a. (i) only

b. (ii) only

c. (i) and (ii) only

d. (i), (ii) and (iii)

Budgeted labour hours 8500

Budgeted Overheads $148750

Actual Labour hours 7928

Actual overheads $146,200

Based on the data given above, what is the labour hour overhead absorption rate?

Select one:

a. $18.76 per hour

b. $17.20 per hour

c. $18.44 per hour

d. $17.50 per hour

Which of the following would be best described as a short-term tactical plan?

Select one:

a. Reviewing cost variances and investigate as appropriate

b. Comparing actual market share to budget

c. Lowing the selling price by 15%

d. Monitoring actual sales to budge

A company has established the following information for the costs and revenues at an activity level of 500 units $

Direct materials 2,500

Direct Labour 5,000

Production overheads 1,000

Selling costs 1,250

TOTAL COST 9,750

Sales revenue 17,500

Profit 7,750

20% of the selling costs and 50% of production overheads are fixed over all levels of activity.

The following data relate to two output levels of a department:

Machine hours 17,000 18,500

Overheads $246,500 $251,750

The variable overhead rate per hour is $3.50. The amount of fixed overheads is:

Select one:

a. $59,500

b. $187,000

c. $5250

d. $246,500

All of the following may be cost objects except:

Select one:

a. a cost centre

b. a customer

c. a manager

d. a product

Using the FIFO system for pricing stock issues means that when prices are rising:

Select one:

a. product costs are overstated and profits understated

b. product costs are kept in line with price changes

c. product costs are understated and profits are overstated.

d. product costs are understated and profits understated