Which point on the graph shows the break-even point?
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Which of the following statements about the difference in inventory value between absorption costing and marginal costing is true?
A. Inventory value is higher with absorption costing
B. Absorption costing includes all the costs of production
C. Absorption costing values inventory at the total variable cost
D. Marginal costing includes an element of fixed costs
Which TWO of the following are features of manufacturing that would result in an organisation choosing a process costing approach?
A. Units of production are easily identifiable
B. Production is continuous
C. It may produce more than one product or a by-product
D. Products are made to individual customer specifications
A process results in joint products: product A and product B. The process has inputs of $150,000 of raw materials and $200,000 in operating costs. The output is 50,000kg of product A and 30,000kg of product B. What is the total cost of producing product B?
A. $200,000
B. $150,000
C. $131,250
D. $218,750
Process 1 produces joint products A and B and the total costs are $375,000. The results are as follows:They can be processed further to produce products AA and BB.Which combination of products should be produced to maximise sales revenue?
A and B
B. AA and B
C. AA and BB
D. A and BB