HIGHER ACCOUNTING KU REVISION

The method of inventory control used is

• FIFO

• LIFO

• LILO

• AVCO

Which of the following is NOT a main objective of creating budgets?

• To help plan ahead for the whole business
• To help control by comparing actual with budget
• To help increase participation and motivation of managers
• To meet legal requirements to publish all financial resuls

There are three main types of budget you need to know how to calculate. Which one is calculated by adding purchases to opening inventory and then deducting closing inventory?

• Cash
• Sales
• Production

The opening inventory of one month becomes the closing inventory of the next month in sales and production budgets.
True or False?

• True
• False

Depreciation should be included in a cash budget 'overhead' payment figure.

• True
• False

What is the name given to the amount of sales made to customers which is unlikely to be repaid?

• Sales returns
• Purchase returns
• Bad debts
• Write off

Monthly fixed costs are £100,000 excluding depreciation of £20,000.

Which figure should be shown in the Payments section of the cash budget?

• £100,000
• £120,000
• £80,000
• none of the others

Which is NOT an advantage of using a spreadsheet when preparing cash budgets?

• If statements can be used to deal with changing scenarios e.g. level of production
• Templates can be created for cash budgets which saves time for future users
• Charts can be created quickly to present information in a way that non-accountants can understand
• The user can be reassured of 100% accuracy of calculations in all circumstances 

Process costing is a method of costing used in what type of industries?

• Manufacturing
• Construction
• Transportation
• Hospitality

In process costing products go through a number of different ________  before they are complete.

• Jobs
• Stages
• Services
• Allocations