MA

Which of the following statements about divisionalizationis/are correct? (i) Divisionalizationleads to head office managers having reduced control over operational decisions in an operating unit. (ii) Achieving corporate goals will be the only factor considered by divisional managers when they are making decisions. (iii) Divisionalizationallows operating decisions to reflect the local...

A company absorbs overheads on a machine hour basis. Actual machine hours were 20,000, actual overheads were $480,000 and there was over absorption of overheads of $95,000. What is the overhead absorption rate?A . $19.25 per unitB . $19.25 per hourC . $28.75 per unitD . $28.75 per hourView AnswerAnswer:...

Toshi Ltd currently sets its selling price at $10, which achieves a 25% mark-up on variable cost. Annual production and sales volume is 100,000 units and annual fixed costs are $80,000. How much would the selling price need to be increased in order to double profit if costs, production and...

Silur Co buys and restores items of exclusive vintagejewelry. At 31 May 2009, the company had three items in inventory. Details of the itemswere: NecklaceBraceletPendant Purchase cost12,00031,00045,000 Expected selling price25,00038,00053,000 Restoration costs to date6,0005,0002,000 Further costs before sale2,0003,0001,000 What was the total value of Silur’s inventory at 31 May 2009?A...

Which of the following statements is NOT correct about the Kaizen philosophy?A . Theorganizationshould always seek perfection. Since perfection is never achieved, there must always be scope for improving on the current methods.B . Theorganizationshould always seek perfection in some departments of theorganizationonly as perfection cannot be achieved in all...

On 1 December 2009 Reon Co acquired a non-current asset at a cost of $318,000. The purchase was financed through a six year finance lease. Under the lease, an initial payment of $71,000 was made on 1 December 2009. Five further payments of $71,000 are required on 1 December each...

Which of the following statements about accounting concepts and the characteristics of financial information is correct?A . The concept of substance over form means that the legal interpretation of a transaction must be reflected in financial statements, regardless of the economic substance.B . The historical cost concept means that only...

The budgeted overheads of Nambro for the next year have beenanalyzedas follows: $000 Purchase order processing costs450 Production run set up costs180 Machine running costs640 In the next year, it is anticipated that machines will run for 32,000 hours, 6,000 purchase orders will be processed and there will be 450...

Quastir Co manufactures a single product which sells for $48.80 per unit. At this selling price, theprofitper unit is $5.35, after apportionment of the $65,000 of fixed costs. The budgeted production and sales volume is 20,000 units. What is the margin of safety, expressed in units (to the nearest unit)?A...

Budgeted sales of X for December are 18,000 units. At the end of the production process for X, 10% of production units are scrapped as defective. Opening inventories of X for December are budgeted to be 15,000 units and closing inventories will be 11,400 units. All inventories of finished goods...