AAT Level 3 Costs and Revenues

Which of the following is an example of capital expenditure?

• Repairs to machinery
• Depreciation of new vehicle
• Installation of air conditioning
• Redecoration of office

A semi-variable cost is what?

• A cost that contains both a fixed and variable element.
• A cost which varies with production levels.
• A cost which rises in steps only.
• A cost which remains fixed regardless of activity level.

If basic pay is paid for a 40 hour week at £6 per hour and overtime at time and a half, what is the total pay due for a 50 hour week?

• £300
• £330
• £90
• £249

If basic pay is paid for a 40 hour week at £6 per hour and overtime at time and a half, what is the overtime premium for a 50 hour week?

• £90
• £330
• £30
• £60

What would be the most appropriate basis to apportion rent and rates for a factory?

• Power usage
• Number of employees
• Carrying value of machinery
• Floor space

A cost which increases in direct proportion to activity would be what type of cost?

• Variable
• Fixed
• Semi-variable
• Stepped

What is a cost unit?

• A location or function in which respect costs are accumulated.
• An individual unit of product or service for which costs can be separately ascertained.
• Items of expenditure that are not labour or materials related.
• Costs that vary with time, but not level.

FIFO is what?

• A method of valuing issues of inventory that assumes issues are made from the newest inventory available.
• The quantity of inventory in hand at the time when a new order is placed.
• A method of valuing issues of inventory that assumes issues are made from the oldest inventory available.
• The charging of costs to cost unitsw.

Lead time is the time.....

• .....between an order for goods being placed and the receipt of that order.
• .....the time i takes for issues to be recorded.
• ....between stock being issued and the paperwork being completed.
• .....for an investment project to recover the cash cost of the original investment.

Economic order quantity is remembered using what?

• Plaice and chips please
• Sausage and chips twice
• Ham, egg and chips
• Cod and chips twice