题目内容

Why would a business prefer to hold low volumes of inventory?

A. Because the cost of ordering inventory is high
Because the amount you use doesn’t vary
C. Because the cost of holding inventory is very high
D. Because you can only order a set amount

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Which TWO of the following are reasons why an organisation may decide to use absorption costing?

A. To allocate the fixed costs of production to units
B. To determine how much inventory to maintain
C. To know how profitable a product is
D. To help to plan production levels

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A business producing product Z has a production process that involves two staff remotely overseeing the operation of five machines. Which of the following is the most suitable basis for absorption costing?

A. Estimated production
B. Machine hours
C. Labour hours
D. Raw materials used

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A factory produces three products: A, B and C. The direct costs per unit and the number of units produced are:Indirect costs are allocated using direct costs as a basis.If the total indirect costs are $27,500 what is the indirect cost per unit allocated to product B?

A. $11.22
B. $4.68
C. $14.03
D. $8.87

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A company makes a product where all the direct costs are of equal importance.Which of the following would be the best basis on which to calculate the absorption rate for this product?

A. Labour hours
B. Material cost
C. Prime cost
D. Machine hours

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Why would a business prefer to hold low volumes of inventory?

A. Because the cost of ordering inventory is high Because the amount you use doesn’t vary C. Because the cost of holding inventory is very high D. Because you can only order a set amount

Which TWO of the following are reasons why an organisation may decide to use absorption costing?

A business producing product Z has a production process that involves two staff remotely overseeing the operation of five machines. Which of the following is the most suitable basis for absorption costing?

A factory produces three products: A, B and C. The direct costs per unit and the number of units produced are:Indirect costs are allocated using direct costs as a basis.If the total indirect costs are $27,500 what is the indirect cost per unit allocated to product B?

A company makes a product where all the direct costs are of equal importance.Which of the following would be the best basis on which to calculate the absorption rate for this product?

A. Because the cost of ordering inventory is high
Because the amount you use doesn’t vary
C. Because the cost of holding inventory is very high
D. Because you can only order a set amount