Quiz 1 (Lecture 1 to 3)

Which of the following is NOT an external source of information?

• Newspapers

• Internet

• Employees

• Industry report

Two statements follow about data and information:

1. Data is a scientific term for facts, figures and information.

2. Information is data which has been processed.

• Both statements are false

• Both statements are true

• Statement 1 is true but statement 2 is false

• Statement 1 is false but statement 2 is true

Which of the following combinations describe the purposes of management information?

• Planning, negotiating and decision making

• Control, decision making and publication

• Decision making, negotiating and implementing

• Planning, control and decision making

Which of the following is NOT a quality of good management information?

• Clarity

• Reliability

• Accuracy

• Computerised

Which of the following is NOT an attribute of management accounts?

• Based on historical data only

• Produced for internal use only

• Used for planning, decision making and control

• Presented according to management’s requirements

Which of the following is the best description of a stepped-fixed cost?

• A cost with both a fixed element and a variable element

• A cost which increases as the level of activity increases

• A cost which is fixed no matter what the level of activity

• A cost which is fixed for a certain level of activity and then increases

Which costs would NOT be included as a product cost in marginal costing?

• Direct material costs

• Direct labour costs

• Variable production costs

• Fixed production costs

A production worker is paid a salary of $650 per month, plus an extra 5 cents for

each unit product during the month.

This labour cost is best described as which of the following?

• A variable cost

• A fixed cost

• A step cost

• A semi-variable cost

What are the three main labour control ratios?

• Efficiency, capacity utilisation, production volume

• Rate, efficiency, capacity

• Rate, idle time, production volume

• Capacity, idle time, efficiency

A business has credit sales of $150,000 and cash sales of $50,000. The production

costs are $120,000 with selling costs of $35,000 and administration costs of $25,000.

What is the operating profit margin (to the nearest one decimal place)?

• 10.00%

• 20.00%

• 22.50%

• 40.00%