FSPS0052 Cost Accounting

Which of the following would NOT be included in a cash budget?

(i) Depreciation

(ii) Provisions for doubtful debts

(iii) Wages and salaries

• (i) and (ii) only

• (ii) and (iii) only

• (iii) only

• (i) only

What costs are treated as product costs under direct costing?

• Only direct costs

• Only variable manufacturing costs

• All variable costs

• All variable and fixed manufacturing costs

The excess of revenue over variable costs, including manufacturing, selling and administrative costs, is called:

• gross margin.

• Manufacturing margin.

• Contribution margin.

• Segment margin.

Adik Sdn. Bhd. produces and sells rugby balls. The following costs are available for the year ended 31st December 2022. The company has no beginning inventory. In 2022, 8,000,000 units were produced, but only 7,500,000 units were sold. The unit selling price was RM 500 per ball. Costs and expenses were as follows:

Variable costs per unit:

Direct materials RM100

Direct labor RM50

Variable manufacturing overhead RM80

Variable selling and administrative expenses RM20

Annual fixed costs and expenses:

Manufacturing overhead RM500,000

Selling and administrative expenses RM100,000

Calculate the manufacturing cost of one unit of product using variable costing

• RM250

• RM230

• RM150

• RM170

Adik Sdn. Bhd. produces and sells rugby balls. The following costs are available for the year ended 31st December 2022. The company has no beginning inventory. In 2022, 8,000,000 units were produced, but only 7,500,000 units were sold. The unit selling price was RM 500 per ball. Costs and expenses were as follows:

Variable costs per unit:

Direct materials RM100

Direct labor RM50

Variable manufacturing overhead RM80

Variable selling and administrative expenses RM20

Annual fixed costs and expenses:

Manufacturing overhead RM500,000

Selling and administrative expenses RM100,000

Calculate the net profit of Adik Sdn. Bhd. using variable costing in 2022.

• RM1,875,000

• RM1,725,000

• RM1,275,000

• RM2,750,000

The following differences between absorption and variable costing:

(i)Only partial of the Fixed manufacturing Overhead is

EXPENSES whereby All of the Fixed manufacturing

Overhead is EXPENSES

(ii)Part of the Fixed OH is absorbed

by the ending inventory whereby No portion of fixed manufacturing

OH cost is absorbed by the ending inventory

• Yes

• No