Question 1 The predetermined absorption rate is used to assign overheads to the units of production.
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Question 2 The first-in-first-out (FIFO) and weighted average inventory valuation methods can be applied to finished goods only.
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Question 3 Manufacturers, wholesalers, and distributors are all purchasers of merchandise.
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Question 4 The cost of wages paid to factory employees on leave or on holiday is considered as direct labour cost.
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,Question 5 The balance of the workers’ leave entitlement is called discretionary leave.
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Question 6 A correlation coefficient of 0 (zero) indicates that there is correlation between two variables.
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Question 7 The allocation of fixed production overheads is based on the theoretical capacity of the production capacity.
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Question 8 Labour stability refers to the company’s ability to retain employees.
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,Question 9 ________________means the taxation required to be deducted by an employer from the remuneration paid to an employee.
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B. Company tax
C. Employee's tax
D. Value added tax (VAT)
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Question 10 ________________ contains a summary of the detail transactions of transactions recorded in the creditors' subsidiary ledger.
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B. Debtors control account
C. Creditors control account
D. Work-in-progress control account
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Question 11 The _______ method does not recognise the cost of interdepartmental services provided among service departments and apportions the costs of service departments
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Question 12 Which one of the following would probably be the least appropriate allocation base for allocating overhead in a high automated manufacturer of specialty valves?
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C. Machine setups.
D. Direct labour hours.
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Assessment 2
, Question 13 Within a relevant range, the amount of variable cost per unit:
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question B. differs at each activity level.
C. increases as activity increases.
D. decreases as activity increases.
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Question 14 One of the following is not deductible from employee’s salary or wage:
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C. Pay-as-you-earn (PAYE)
D. Employees’ Unemployment Insurance Fund contribution
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Question 15 We apply the _____ method to establish the variable cost per unit of production and the total fixed production costs.
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Question 16 Which one of the following would not be classified as an example of indirect materials?
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question B. Vanish used to stain a coffee table.
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D. Cotton used to stitch furniture.
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Assessment 2
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