Which of the following statements about activity based costing (ABC) is/are correct?
(i) All product costs will be lower under ABC than under absorption costing.
(ii) ABC can provide information to assist in controlling costs.
A division manufacturing a single product which sells for $325 has the following unit cost structure:
$
Direct materials95
Directlabor78
Variable overheads56
Share of fixed costs45
Total cost274
In the coming period, the budgeted production volume is 10,000 units.
What is the budgeted breakeven sales volume (to the nearest unit)?
Which ONE of the following statements is correct?
Silur Co buys and restores items of exclusive vintagejewelry. At 31 May 2009, the company had three items in inventory. Details of the itemswere:
NecklaceBraceletPendant
Purchase cost12,00031,00045,000
Expected selling price25,00038,00053,000
Restoration costs to date6,0005,0002,000
Further costs before sale2,0003,0001,000
What was the total value of Silur’s inventory at 31 May 2009?
Which of the following statements is NOT correct about the Kaizen philosophy?
In the last production period, Runnos Co budgeted to produce 18,000 units with a standard material cost of $72,000.
Each unit has a standard material input of 2 kg. Actual production volume was 18,600 units, and 39,060 kg of material was used at a cost of $76,167.
What is the material price variance?
PAQ Plc makes three products in a period.
Quantity (units)Laborhoursper unit
Product P1,0004
Product A2,0006
Product Q3,0003
Total6,000
Overheads for the period are $30,000 and they are absorbed on the basis oflaborhours. What is the fixed overhead cost absorbed by a unit of Product A?
Henlow plc manufactures two products, Click and Flick. It intends to produce 2,000 units of each product in the next year to meet the sales budget.
Each Click requires 2 kg of material Z and 1 kg of material Y and each Flick requires 3 kg of material Z and 4 kg of material Y.At present there are 200 kg of Z and 500 kg of Y in inventory.
Henlow plc intends to increase the inventory levels of these materials by the end of the year to 600 kg of Z and 800 kg of Y.
Material Z costs $4 per kg and material Y costs $5 per kg.
What is the total materials purchase for the next year?
Revue plc uses a standard costing system. The budget for one of its products for September includeslaborcost (based on 4 hours per unit) of $117,600. During September, 3,350 units were made which was 150 units less than budgeted. Thelaborcost incurred was $111,850 and the number oflaborhours worked was 13,450.
Thelaborefficiency variance for the month was:
According to the IASB's Framework for the Preparation and Presentation of Financial Statements, information about the entity's liquidity and solvency is useful for users in predicting
At the beginning of March 2012, INS Plc has an opening balance of $60,000 on its receivables ledger. Sales of $160,000 have been budgeted for March and it is budgeted that 60% of these will be settled in March after a cash discount of 2.5%.
If 23% of the opening receivables are still outstanding at the end of March, what will be the budgeted receivables figure at that date?
Which of the following statements about transfer pricing is correct?