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QUESTION NO: 1
CL produces a household detergent in a single process. Information for this process for last month is as follows:
(a) Materials input - 11,000 Litres at £2.00 per litre.
(b) Conversion costs - £23,000
(c) Output during the month - 8,000 litres.
(d) There were 2,000 units of closing work in progress which was complete as to materials and 35% complete as to conversion.
(e) Normal loss for the month was 5% of input and all losses have a scrap value of 50p per litre.
(f) There is no opening work in progress.
What was the value of normal loss during the month? Give your answer to one decimal place.
Answer:
£275.1
QUESTION NO: 2
Based upon extensive historical evidence, a company's daily sales volume is known to be normally distributed with a mean of 1,728 units and a standard deviation of 273 units.
What is the probability that, on any one day, the sales volume will be at least 1,300 units?
A. 44.18%
B. 73.89%
C. 5.82%
D. 94.18%
Answer: D
QUESTION NO: 3
Refer to the exhibit.
The budget for product Sentra for the month of August is given below:
Each unit of Sentra requires 4kg of raw materials.
The raw materials usage budget for the month of August is:
A. 504,000 kg
B. 496,000 kg
C. 516,000 kg
D. 492,000 kg
Answer: C
QUESTION NO: 4
A small airport's management accountant has prepared the following management report on the performance of its four retail outlets.
Which retail outlet has the highest contribution per square metre?
A. Outlet A
B. Outlet C
C. Outlet D
D. Outlet B
Answer: B
QUESTION NO: 5
Which of the following best describes a step cost?
A. A cost which increases per unit until activity reaches a critical level; thereafter the cost increases to a higher level and the unit cost remains constant until the next critical activity level is reached.
B. A cost which remains constant until activity reaches a critical level; thereafter the cost increases to a higher level and the unit cost remains constant until the next critical activity level is reached.
C. A cost which remains constant until activity reaches a critical level; thereafter the cost increases to a higher level and the total cost remains constant until the next critical activity level is reached.
D. A cost which increases steadily until activity reaches a critical level; thereafter the cost increases to a higher level and the total cost remains constant until the next critical activity level is reached.
Answer: C
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Updated: May 28, 2022