In an inventory count, inventory of material X is recorded as 5,431 units. At the last check there were 4,982 units. Receipts of inventory are correctly recorded as 2,197 units. Issues to production have been 2,040 units. What is the most likely reason for the discrepancy?
A. Inventory obsolescence
B. Stealing by staff
C. Returns from production
Damaged inventory
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Which is the most suitable form of payment for a factory worker working at a food processing plant?
A. Wage
B. Piecework
C. Salary
D. Commission
During May ABC Co budgeted to make 500 units each taking one hour. Actual volume was 550, which took a total of 530 hours. What was the capacity utilisation ratio for ABC Co in May?
A. 94%
B. 104%
C. 106%
D. 96%
Which TWO of the following are indirect costs for a toy manufacturer?
A. Clothing for toy dolls
B. Factory rent
C. Factory cleaner’s wages
D. Stuffing added to teddy bears
Which of the following is a non-production overhead?
A. Photocopier lease
B. Factory maintenance
C. Depreciation of machinery
D. Cleaning the factory