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Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Appendix 1
Self-test Questions
Exercises and Solutions
Revision Notes
The Press Room
Glossary
Business Accounting and Finance
Tony Davies, University of Wales, Lampeter, UK
Brian Pain, University of Luton, UK
Cost behaviour
Self-test Questions
1
The role of management accounting does not normally include the function of
A)
decision-making
B)
planning and control
C)
cash management
D)
product costing
2
The role of financial management does not usually include responsibility for
A)
treasury management
B)
compliance with accounting standards
C)
risk management
D)
corporate finance
3
The management accounting concepts, additional to the fundamental accounting concepts do not include the
A)
reliability concept
B)
interdependency concept
C)
controllability concept
D)
going concern concept
4
Total costs are comprised of
A)
variable costs plus semi-variable costs
B)
variable costs plus fixed costs plus semi-variable costs
C)
fixed costs plus semi-variable costs
D)
variable costs plus fixed costs
5
Prime costs are comprised of
A)
materials costs plus direct labour costs
B)
materials costs plus production overheads
C)
production overheads plus materials costs plus direct labour costs
D)
direct labour costs plus production overheads
6
Cost allocation is the
A)
charging of a cost centre with the overhead costs resulting solely from the existence of the cost centre
B)
charging of a cost centre with the direct labour and materials costs relating to the cost centre
C)
charging of a product with the direct labour costs relating to the product
D)
charging of a product with the direct labour and materials costs relating to the product
7
Which of the following examples of bases of cost apportionment may relate to rent, heating and lighting?
A)
weight
B)
number of products
C)
area
D)
number of employees
8
Which costs are charged to a product using the method of absorption costing
A)
direct labour costs
B)
total production costs
C)
materials costs plus direct labour costs
D)
production overheads plus direct labour costs
9
In the marginal costing method, contribution is equal to
A)
total revenue less fixed costs
B)
total revenue less total costs
C)
total revenue less direct labour costs
D)
total revenue less variable costs
10
Marginal costing may be preferred to absorption costing because it
A)
complies with Statement of Standard Accounting Practice (SSAP) 9
B)
enables use of the opportunity cost approach
C)
ensures the recovery of total costs in sales pricing
D)
complies with the accruals or matching concept
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