Financial Knowledge Test

Which of the following statements are true?

• An income statement usually covers a full year.

• The income statement may be drawn up for shorter periods, such as one month or three months.

• These shorter periods are used by managers to make internal business decisions.

• All of the above.

Which of the following are part of the formula for calculating Trading gross profit?

• Sales revenue

• Taxes

• These shorter periods are used by managers to make internal business decisions.

• Non of answer are correct

Factory gross profit(GP$) will be impacted by:

• Produced quantity, production cost

• CM price, shipment quantity

• FOB price, shipment quantity

• Shipment quantity, produce quantity

Which of the following actions help to improve trading GP%?

(Can have more than one answer)

• Improve Maxship quantity

• Increase CM price to factory

• Reduced material order quantity

• Delay payment to supplier

Factory PBT will not be affected by any of the following factors?

(Can have more than one answer)

• Fabric consumption

• Production variance, Teco variance

• CM price

• SAM cost

How to improve consolidated profit?

(Can have more than one answer)   

• Increase CM price to factory

• Improve Maxship performance.

• Control factory operation cost

• Saving material consumption.

What actions should the factory take to reduce production variance?

• Improve worker eff%, Idle%

• Reduce factory cost and HC ratio

• Improve SAM saving

• Increase shipment quantity

Which income statement item is presenting the SAM saving performance?

• Cost of goods sales

• Teco variance

• SGA cost

• Production variance

When is Teco variance recorded for an order?

• Production completion of one order

• Shipment completion of one order

• Production, shipment completion of one order

• All of above answers are correct

Choose the factors that do not impact Teco variance?

• Shipped quantity

• Produce quantity

• SAM saving

• Actual Production cost