Final Revision

LC Co wishes to carry out a national survey of adults' reading habits. To reduce travelling costs, the country was divided into constituencies. A sample of 50 constituencies was selected random. With each of these constituencies, five polling districts were selected, again using random techniques. Interviewers will visit a random selection of 30 people on the electoral register of each district selected.

What sample method is the company using?

• Stratified

• Systematic

• Multi-stage

• Simple random

When opening inventories were 8,500 litres and closing inventories were 7,100 litres, William Co had a profit of $61,000 using marginal costing.

If the fixed overhead absorption rate was $4 per litre, what was the profit using absorption costing?

• $61,000

• $55,400

• $56,500

• $51,100

Copy Co rents a photocopier with the following charges. A fixed rental amount is payable up to a certain number of copies each period. if the number of copies exceeds this amount, a constant charge per copy is made for all subsequent copies during that period.

Which of the following graphs depicts the total photocopier rental costs described?

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The following data relate to the overhead expenditure of an organization at two activity levels.

Square metres = 12,750 - Overheads = $73,950

Square metres = 15,100 - Overheads = $83,585

What is the estimated overhead expenditure if 16,200 square metres are be cleaned?

• $25,626

• $44,745

• $88,095

• $192,645

A management consultancy recovers overheads on the basis of chargeable consulting hours. Budgeted overheads were $615,000 and actual consulting hours were 32,150. Overheads were under-recovered by $35,000.

If actual overheads were $694,075, what was the budgeted overhead absorption rate per hour?

• $19.13

• $20.50

• $21.59

• $22.68

A pet food company incurred the following costs last year for each of its three different markets.

Dog food: $1,345,000

Cat food: $2,300,000

Food supplements: $985,000

If a pie chart were used to represent the proportion of costs incurred by each area, what would be the angle of the section representing cat food?

• 179 degrees

• 77 degrees

• 120 degrees

• 106 degrees

Which TWO of the following statements relating to activity-based costing are true?

• Activity-based costs can be used to identify relevant costs for decision making.

• Activity-based costing cannot be used to cost services.

• Activity-based costing is a form of a absorption costing.

• Activity-based costing is an alternative to traditional volume-based costing models.

Which of the following is a disadvantage of the payback method of investment appraisal?

• It may lead to excessive investment in short-term projects.

• Its use will hinder liquidity.

• It is a fairly complex technique and not easily understood.

• It tends to maximize financial and business risk.

Which of the following are aspects of value analysis?

• Esteem value

• Exchange value

• Net realizable value

• Use value

• Cost value

The direct materials involved in the manufacture of a Whoopie cost $2 per unit and the direct labour cost is $2.50 per unit. There are also direct expenses of $0.50 per Whoopie. Fixed costs apportioned to a Whoopie amount to $3.15.

What is the prime cost of a Whoopie?

• $3.65

• $4.50

• $5.00

• $8.15