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| Section | Objectives |
|---|---|
| Topic 1: Decision Making Techniques | - Short-term decision making
|
| Topic 2: Costing Methods | - Absorption costing
|
| Topic 3: Accounting for Materials, Labour and Overheads | - Material control
|
| Topic 4: Introduction to Cost Accounting | - Cost classification and behavior
|
| Topic 5: Budgeting and Forecasting | - Budget preparation
|
A company which manufactures and sells one product has fixed costs of $80,000 per period. The selling price per unit of $25 generates a contribution/sales ratio of 40%.
How many units would need to be sold in a period to earn a profit of $10,000?
Correct Answer: A 🗳️
The year-to-date results at the end of month 9 included sales revenue of $3,600,000 and variable costs of
$2,100,000.
During month 10, sales revenue was $450,000 and variable costs were $270,000.
What year-to-date contribution to sales ratio (C/S ratio) would be reported at the end of month 10?
Correct Answer: B 🗳️
A company operates an integrated standard cost accounting system. The standard price of raw material A is
$20 per litre. At the start of period 1, the inventory of 500 litres of raw material A was valued at $20 per litre.
During period 1, 100 litres of raw material A were purchased at an actual price of $21 per litre. During period 2,
550 litres of raw material A were issued to Job 789.
In respect of the above events, which TWO of the following statements are correct? (Choose two.)
Correct Answer: D,E 🗳️
Which THREE of the following are parts of the master budget? (Choose three.)
Correct Answer: A,B,E 🗳️
Explanation: Only visible for Free4Torrent members. You can sign-up / login (it's free).
Which of the following is a valid definition of a cash budget?
Correct Answer: B 🗳️
Explanation: Only visible for Free4Torrent members. You can sign-up / login (it's free).
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