A sandwich shop expects to sell 7,500 sandwiches in a week. The ingredients cost $5,625, kitchen staff $1,300, serving staff $1,550, rent is $525 and other expenses $375. If mark-up is 100% then what is the price of a sandwich?
A. $2.50
B. $3.00
C. $2.25
D. $3.50
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Which TWO of the following are characteristics of a service?
A. Tangibility
B. Perishability
C. Separability
D. Inconsistency
A factory has two production cost centres with the following labour and machine hours:What is the most appropriate basis for overhead absorption for the cost centres?
A. Machine hours for both cost centres
B. Machine hours for cost centre A and labour hours for cost centre B
C. Labour hours for cost centre A and machine hours for cost centre B
D. Labour hours for both cost centres
Which is the correct term for the descriptions?Charging whole cost items to a cost centre or cost unit
Absorption
B. Allocation
C. Apportionment
Spreading costs over cost centres on a fair basis
Absorption
B. Allocation
C. Apportionment