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| Section | Objectives |
|---|---|
| Topic 1: Decision Making Techniques | - Short-term decision making
|
| Topic 2: Budgeting and Forecasting | - Budget preparation
|
| Topic 3: Introduction to Cost Accounting | - Cost classification and behavior
|
| Topic 4: Accounting for Materials, Labour and Overheads | - Material control
|
| Topic 5: Costing Methods | - Absorption costing
|
A new product requires an investment of $200,000 in machinery and working capital. The total sales volume over the product's life will be 5,000 units. The forecast costs per unit throughout the product's life are as follows:
The product is required to earn a return on investment of 35%.
What unit selling price needs to be achieved?
Correct Answer: D 🗳️
FILL BLANK
The records of a manufacturing company show the following relationship between total cost and output.
The budgeted output for Period 3 is 27,000 units. Assume that previous cost behaviour patterns will continue.
What is the total budgeted cost for Period 3?
Give your answer in the nearest whole number.
Correct Answer:
431000
Which THREE of the following are parts of the master budget? (Choose three.)
Correct Answer: B,C,D 🗳️
Explanation: Only visible for PracticeDump members. You can sign-up / login (it's free).
In a company that manufactures many different products on the same production line, which TWO of the following would NOT be classified as indirect production costs? (Choose two.)
Correct Answer: B,D 🗳️
A company is considering investing $57,000 in a machine that will last for five years, after which time it will have no value. The machine will generate additional revenue of $190,000 each year. Annual running costs, including depreciation of $11,400 will amount to $168,400.
Assuming that all cash flows occur evenly, the payback period of the investment in the machine is closest to:
Correct Answer: C 🗳️
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