Changing to a just-in-time, from a traditional, manufacturing environment can affect cost accounting systems.
Which of the following statements is correct?
A manufacturing company has fixed production overhead costs, direct material costs and direct labour costs. The number of units of closing finished goods inventory is lower than the opening inventory.
Which of the following statements is true?
A company uses a standard costing system.
The company’s sales budget for the latest period includes 1,500 units of a product with a selling price of $400 per unit.
The product has a budgeted contribution to sales ratio of 30%.
Actual sales for the period were 1,630 units at a selling price of $390 per unit.
The actual contribution to sales ratio was 28%.
The sales volume contribution variance for the product for the latest period is:
A flexible budget is a budget that is:
A company's budgeted data for the period are shown in the table below.
There is a stepped increase in fixed overheads of $10,000 when production exceeds 52,000 units.
Actual production for the period was 60,000 units.
What is the flexed budgeted cost for the period?
Give your answer as a whole number (in '000s).
MDS is facing a temporary shortage of Material H which is used to produce all three of its products.
In order to maximise its profitability, which product should be manufactured first?
Your company want to know how many units they'd have to sell this season to break even. However, you have some reservations over whether or not breakeven analysis is suitable for the company.
Which of these assumptions over product range limit the accuracy of break even analysis? Select ALL that apply.
A company has to choose between three mutually exclusive projects. Market research has shown that customers could react to the projects in three different ways depending on their preferences. There is a 30% chance that customers will exhibit preferences 1, a 20% chance they will exhibit preferences 2 and a 50% chance they will exhibit preferences 3. The company uses expected value to make this type of decision.
The net present value of each of the possible outcomes is as follows:
A market research company believes it can provide perfect information about the preferences of customers in this market.
What is the maximum amount that should be paid for the information from the market research company?
Information about a company's two products is as follows:
The products are currently sold in equal quantities.
Monthly fixed costs are $360,000.
What is the monthly breakeven sales revenue assuming a sales quantity mix of 50/50?
Give your answer to the nearest $.
The following details are available for a company's production overhead costs at different levels of activity:
The company uses the high-low method to calculate its budgeted production overhead costs.
What is the budget for production overhead costs at an activity level of 8,500 units?
Give your answer as a whole number.
TESTED 16 Jul 2025