WorksheetsPerformance Management
Total questions: 10
Worksheet time: 9mins
Activity-based costing:
Uses a plant-wide overhead rate to assign overhead
Is not expensive to implement
Typically applies overhead costs using direct labor-hours
Uses multiple activity rates
Under ABC an event that causes the consumption of overhead resources in an organization called
Activity Cost pooling
Activity
Overhead
Allocation
What is not correct about ABC:
Less accurate
Difficult to implement
Time consuming
Massive amount of data
What is the formula for break even?
Contribution/fixed costs
Fixed costs/contribution per unit
Sales price - fixed costs
Sales price - variable costs
Margin of safety is?
The number of units sold above the break even point
Sales - variable costs
Fixed costs / contribution per unit
When a limiting factor is present we base the decision on which products to make based on the product that gives the highest contribution?
True
False
Sales price is £45 material is £12, labour is £8 and fixed production costs are £5 the contribution is?
£33
£20
£25
What is one of the element of the marketing mix that produces revenue?
Product
Price
Promotion
People
In business, a company in the same industry or a similar industry which offers a similar product or service is called?
Coordinators
Business Partners
Management
Competitor
What is the main challenge for market leaders and firms trying to build a market share?
aggressive price cutting
salary increase
adding manpower
creating a different strategy
