Accounting Quiz

A company has decided to use the direct method and allocate fixed administrative costs based on the number of employees. The fixed administrative costs are SAR 60,000 and will be allocated to two operating departments. The number of employees in the operating department are 15 and 25. The allocated fixed costs will be:

• SAR 5,000 and 55,000

• SAR 22,500 and 37,500

• SAR 30,000 and 30,000

• SAR 25,000 and 35,000

If the final selling price is SAR 650 and the separable cost is SAR 450, then the net realizable value will be:

• SAR 600

• SAR 200

• SAR 810

• SAR 400

What is the Estimated Revenue for the Month of December 2024 if estimated sales units are 1500 and the estimated selling price per unit is SAR 4?

• SAR 5,000

• SAR 6,000

• SAR 10,000

• SAR 9,000

What is the Expansion of CVP Analysis?

• Cost Volume Profit Analysis

• Cost Variance Periodicity Analysis

• Cost Value Profit Analysis

• Cost and Variable Profit Analysis

Which of the following methods is not based on Market?

• Sales value at split-off point

• Realisable Net Value

• Physical Output method

• Constant Gross Margin NRV

is a comprehensive plan for the upcoming accounting period.

• Master budget

• Operating budgets

• Variance Budget

• financial budget

Gross Margin can be computed as:

• Revenue - Joint Costs - Separable Cost

• Revenue - Joint Costs + Separable Cost

• Joint Cost / Revenue - Separable Cost

• Revenue + Joint Cost - Separable Cost

Which method begins by ranking each support department according to the amount of service provided to other support departments?

• Indirect Method

• Direct Method

• Step Down Method

Electricity Costs are relevant to the decision:

• To purchase furniture or rent furniture

• To promote an employee or not

• To lease or buy a building for your business

• To open a business or not

Which of the following is not a method of allocating Joint Cost?

• Net Realizable Method

• Discount Method

• Sales Value at Split-off Method

• Physical Output Method