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A business uses a job costing approach. Which of the following is a reason for this to be a better choice for the business than choosing a different approach?

A. The product is a single, clearly defined output
B. Large numbers of a standard item are being made
C. The costs can’t be divided into units
D. There is no clearly defined unit

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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

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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

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Which is the correct term for the descriptions?Charging whole cost items to a cost centre or cost unit

Absorption
B. Allocation
C. Apportionment

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A business uses a job costing approach. Which of the following is a reason for this to be a better choice for the business than choosing a different approach?

A. The product is a single, clearly defined output B. Large numbers of a standard item are being made C. The costs can’t be divided into units D. There is no clearly defined unit

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?

Which TWO of the following are characteristics of a service?

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?

Which is the correct term for the descriptions?Charging whole cost items to a cost centre or cost unit

A. The product is a single, clearly defined output
B. Large numbers of a standard item are being made
C. The costs can’t be divided into units
D. There is no clearly defined unit