Questions MULTIPLECHOICE QUESTIONS for F2 Q.

1 Chapter 1:The nature and purpose ofmanagementaccounting 1Data is information that has been processed in such a way asto make it meaningful for use by management in makingdecisions. Is this statement TRUE or FALSE? (1 mark) 2Which of the following is not a fundamental attribute of goodinformation?A Complete B Concise C Cost effective (1 mark) 3Which of the following steps does not form part of theplanning process?A Set objectives for achievement B Identify ways in which objectives can be achieved C Take corrective action to improve chances of achievingobjectives (1 mark) 4Which of the following is the appropriate name for planningwhich considers how the functional heads within a businessunit will coordinate employees on a day-to-day basis?A Strategic planning B Tactical planning C Operational planning (1 mark) 5The manager of a division is responsible for costs andrevenues as well as capital invested. Which is the appropriate classification for the division? A Revenue centre B Investment centre C Profit centre (1 mark) Multiple choice questions Q.2 KAPLAN PUBLISHING QQQQQ 6The following assertions relate to management accounting:

i) The purpose of management accounting is to provide accountinginformation to the managers of the business and other internalusers.ii) Management accounts are only concerned with the cost of goods, services and operations.Which of the following statements are true? A Assertion i) and ii) are both correct B Only assertion i) is correct C Only assertion ii) is correct (1 mark) Chapter 2:Types ofCost and Cost Behaviour 7Which of the following costs should not be included in thestock valuation of a manufacturing business?A Depreciation on the plant and machinery B Salary of salesman C Factory supervisor's salary D Electricity for factory (2 marks) 8Ashop carries out repairs on customers' electrical items, egtelevisions, video recorders, etc. Which of the following is an example of an indirect variable cost?ABusiness rates for repair shopBSalary of repair shop supervisor CRepair person paid per hour workedDElectricity for recharging repair tools (2 marks) 9The following diagram represents a cost behaviour pattern. TotalCost$0Volume of activity questions KAPLAN PUBLISHING Q.3 QQQQ

Multiple choice questions Q.4 KAPLAN PUBLISHING Which of the following statements is consistent with theabove diagram?A Annual factory costs when the electricity supplier sets a tariff based on a fixed charge plus a constant unit cost for consumption but subject to a maximum annual charge. B Weekly total labour cost when workers are paid an hourlywage during normal working hours and a higher hourly rate if they are required to work outside those hours. C Total direct material cost for a period if the supplier charges alower unit cost on all units once a certain quantity has beenpurchased in that period.

D Total direct material cost for a period if the supplier has agreedto a maximum charge for that period. (2 marks) 10The following diagram represents a cost behaviour pattern. TotalCost$0Volume of activity Which of the following statements is consistent with theabove diagram?A Annual factory costs when the electricity supplier sets a tariff based on a fixed charge plus a constant unit cost for consumption but subject to a maximum annual charge B Weekly total labour cost when workers are paid an hourlywage during normal working hours and a higher hourly rate if they are required to work outside those hours C Total direct material cost for a period if the supplier charges alower unit cost on all units once a certain quantity has beenpurchased in that period D Total direct material cost for a period if the supplier has agreedto a maximum charge for that period (2 marks) Q 11The telephone costs of a business are likely to be classifiedas a stepped fixed cost. Is this statement TRUE or FALSE? A True B False (1 mark) 12Acompany has a performance related pay scheme inoperation. What is the most appropriate cost classification for the salaries of the managers? A Fixed cost B Stepped fixed cost C Semi-variable cost (1 mark) 13Which of the following statements is correct?A Only direct production costs should be included in stockvaluation B All indirect costs should be treated as non-production costs. C The sum of direct costs is known as prime cost. D Indirect costs per unit are always larger than direct costs per unit.

(2 marks) 14The costs and output of a business for the last quarter of theyear were as follows:OutputCost(units)($) Oct18008850Nov20008750Dec8003950 Using the high low method which of the following representsthe estimated cost in January of producing 1500 units if themonthly fixed costs are expected to increase by $100 at thestart of next year?A 6750 B 6850 C 7380 D 7480 (2 marks) questions KAPLAN PUBLISHING Q.5 QQQQ Multiple choice questions Q.6 KAPLAN PUBLISHING 15Abusiness has experienced the following labour costs:OutputCost(units)($) 700086,00012000141,000900097,500Fixed costs increase by $15000 for output in excess of 10,000units. Using the high low method what is the estimated cost of producing 14000 units ?A 142000 B 157,000 C 163,000 D 178,000 (2 marks) Chapter 3:Business mathematics 16Expected values are of most use as a prediction tool whenconsidering the result of a one-off outcome. Is this statement TRUE or FALSE? A True B False (1 mark) 17Acompany has estimated that sales next year may be$200,000 (probablility 0.6), $300,000 (probablility 0.3) or $400,000.

What is the expected value of sales to be used in next year'sforecast? A 250,000 B 305,000 C 450,000 (1 mark) QQQ 18Regression analysis has been used to find the line of best fitfor two variables, x and y and the correlation coefficient hasthen been calculated to assess the reliability of the line as aforecasting tool. What is the value of the correlation coefficient for the line that willprovide the most reliable forecast? A -0.9 B 0 C +0.2 (1 mark) 19Regression analysis has been used to calculate the line of best fit from a series of data. Using this line to predict a valuewhich lies between the two extreme values observedhistorically is known as extrapolation. Is this statement TRUE or FALSE? A True B False (1 mark) 20Regression analysis has produced the following results fromthe batch production costs for each of the past 5 months. x=540, y=755, x 2 = 61,000, xy = 83,920Which of the following is the appropriate value for b in theregression line to 2 decimal places? A -1.40

B 0.01 C 0.89 D 1.40 (2 marks) questions KAPLAN PUBLISHING Q.7 QQQ Multiple choice questions Q.8 KAPLAN PUBLISHING 21Acompany is preparing its budgets for next year. Thefollowing regression equation has been found to be a reliableestimate of XYZ's deseasonalised sales in units: y =10x + 150Where y = total sales units and x refers to the accountancy period. What is the expected figure for actual sales in accountingperiod 19 (which is Q1)?A 255 B 315 C 340 (1 mark) Chapter 4:Ordering and accounting for inventory 22Which of the following could be used to document thetransfer of materials from one production department toanother?A Materials requisition note B Materials returned note C Materials transfer note (1 mark) 23The following represent the materials transactions for acompany for a year: $'000Materials purchases240Issued to production215Materials written off12Returned to stores6Returned to suppliers 2The material stock at 31 December 20X1 was $42,000.What was the opening balance on the materials inventory accountat 1 January 20X1? A $1,000 B $25,000 C $33,000 D $59,000

(2 marks) QQQ 24Continuous stocktaking is the process of checking thebalance of every item of inventory on the same date, usuallyat the end of an accounting period. Is this statement TRUE or FALSE? A True B False (1 mark) 25Wasted inventory that is expected to arise due to the breakingup of bulk material receipts into smaller quantities must bewritten off against profits in the period incurred. Is this statement TRUE or FALSE? A True B False (1 mark) Chapter 5:Order quantities and reorder levels 26The objective of holding buffer inventory is to take advantageof quantity discounts. Is this statement TRUE or FALSE ? A True B False (1 mark) 27Which of the following is not a stockholding cost:A The opportunity cost of capital tied up B The cost of insurance C Shipping and handling costs D Stock obsolescence (2 marks) 28Amanufacturer uses 100,000 components costing $1each at aconstant rate throughout the year. The cost of making asingle order for more components is $10 and the holdingcosts for each component are 0.5% of the average inventoryvalue. What is the EOQ? A 1,411 B 14,142 C 20,000

(1 mark) questions KAPLAN PUBLISHING Q.9 QQQQQ 29Aretailer has a steady demand for rugby balls at 50 a month.Each ball costs $6 from the supplier. The costs involved inplacing an order are $10 and the stockholding costs are 20%of the stockholding value per annum. How many orders will be placed per annum? A 1.73 B 6 C 8.48 D 100 (2 marks) 30Annual demand for raw material is 1,000,000 units. Each unitcosts 15 cents. Procurement costs for each order are $20 andlead time has been estimated as 2 days. There are 250working days per annum, the carrying cost of inventory is 10cents per unit and the cost of a stockout is 20 cents per unit.What is the optimal reorder level?A 125 B 8,000 C 20,000 (1 mark) 31Acompany buys each item of inventory at a purchase price of $30. The cost of capital is 9% p.a. The company pays rent of $10,000 p.a. for the warehouse. Each item takes up 1.5square metres in the warehouse which could be sublet at $10per square metre per annum. Admin costs associated witheach order are $0.50 per unit. In addition the company pays$15,000 p.a. salary to the storeman. What is the correct value of h in the EOQ formula? A $27.70 B $28.20 C $32.70 D $33.20 (2 marks) Chapter 6:Accounting for labour 32Which of the following should be classified as direct labour?A

The site foreman of a building company B Workers assembling components on a production line C The storeman handling parts requisitions in a factory. (1 mark) Multiple choice questions Q.10 KAPLAN PUBLISHING QQQQ questions KAPLAN PUBLISHING Q.11 33Task-related activity time records are more commonly used torecord time spent working in manufacturing industries rather than service industries. Is this statement TRUE or FALSE? A True B False (1 mark) 34Acompany employs 100 direct workers in the factory, who arepaid a basic rate of $5 per hour for a 35 hour week. In additionto working their normal hours last month, each worker wasasked to work an additional 5 hours overtime per week tomeet general production requirements. All overtime hours arepaid at time and a half. As a result of some faulty material, 150hours of direct labour time were registered as idle. What is the indirect labour cost for last month, assuming a 4 weekperiod? A $750 B $2,000 C $5,750 D $15,750 (2 marks) 35An employee receives a bonus according to the Rowanscheme. The employee's basic rate of pay is $6 per hour.The allowed time for the job was 1 hour and the employeecompleted it in 40 minutes. What is the total payment for the job (to the nearest cent) ? A $1.33 B $ 4.00 C

$ 5.00 D $ 5.33 (2 marks) QQQ Multiple choice questions Q.12 KAPLAN PUBLISHING 36At 31 March 20x1 an organisation had 5,400 employees.During the previous year 750 had left the organisation,although the management had decided that only 600 neededreplacing and had recruited accordingly. What was the labour turnover rate for the year to 31 March 20X1(to 2 decimal places) ?A10.96%B11.11%C11.27%D13.89% (2 marks) 37 The data below relates to last month's production of product Z:Standard time allowed per unit = 20 minutesBudgeted hours available = 210 hoursActual output = 600 units in 220 hours Which of the following is the correct labour capacity andefficiency ratio? LabourLabour capacityefficiencyA95.24%90.91%B95.24%104.76%C104.76%90.91%D104.76%95.24% (2 marks) Chapter 7:Accounting for overheads 38Acompany manufactures two products, E and F, in a factorydivided into two production cost centres, Primary andFinishing. In order to determine a budgeted fixed overheadcost per unit of product, the following budgeted data arerelevant. PrimaryFinishingAllocated and apportionedfixed costs$84,000$93,000Direct labour - minutes per unitE3625F3040Budgeted production is 9,000 units of E and 6,000 units of F.Fixed overheads are to be absorbed on a direct labour hour basis. QQQ questions KAPLAN PUBLISHING Q.13 What is the budgeted fixed overhead cost of a unit of productE?A $10 B $11 C $12 D $13 (2 marks) 39 Billecarte Ltd manufactures two products, Zonk and Tink, in afactory divided into two production cost centres, Machining andAssembly. In order to find a fixed overhead cost per unit,

thefollowing budgeted data are relevant. MachiningAssembly Direct and allocated fixed costs$120,000$72,000Labour hours per unitZonk0.50 hours0.20 hoursTink1.00 hours0.25 hoursBudgeted production is 4,000 units of each product (8,000 units in all)and fixed overheads are to be absorbed by reference to labour hours. What should be the budgeted fixed overhead cost of a unit of Zonk? A$28B$24C$20D$18 (2 marks) 40Amanufacturing company has three production departmentsand needs to apportion budgeted fixed overheads betweenthem. Budgeted costs for the year are as follows:$Rent & Rates36,000Supervisors salary84,000Machine depreciation132,000252,000 QQ Multiple choice questions Q.20 KAPLAN PUBLISHING What is the difference in annual net income using marginalcosting for inventory valuation, rather than absorptioncosting?A $8,500 B $7,500 C $6,000 D $2,500 (2 marks) Chapter 9:Relevant Costing 55Which of the following costs is relevant for decision making?A Common costs B Avoidable fixed overheads C Committed costs (1 mark) 56Acompany is evaluating a project that requires three types of material (A, B and C). All material is required at thecommencement of the project. Data relating to the materialrequirements are as follows. MaterialQuantityQuantityOriginalCurrentCurrenttypeneeded currentlypurchasepurchaseresalefor thein inventoryprice ofpricepriceprojectinventorytonnestonnes$/tonne$/tonne$/tonneA200300192220B70020026363 2C400100101412Material types Aand C are used regularly by the company innormal production. There is no current use for Material type B. What is the total relevant cost of materials that should beincluded in the evaluation of the project?A $33,800

B $34,400 C $35,200 D $37,400 (2 marks) QQ questions KAPLAN PUBLISHING Q.21 57The following data relates of 200 kg of material ZX ininventory and needed immediately for a contract. $Standard cost3,220Replacement cost3,080Realisable value2,800Within the firm the 200kg of material ZX can be converted into 200kg of material RPat a cost of $140. Material RPhas many uses inthe firm and 200 kg costs $3,080. What cost should be included for material ZX when assessingthe viability of the contract?A $3,220 B $3,080 C $2,940 D $2,800 (2 marks) 58100 hours of skilled labour and 200 hours of unskilled arerequired for a project. The company has plenty of sparecapacity for unskilled workers who are paid at $5 per hour.The skilled workers are fully utilised. They are paid $8 per hour but the contract could be done in overtime which is paidat time and a half. The project will also require 10 hours of theexisting supervisor's time. The supervisor receives a salaryof $25,000 p.a which equates to an hourly rate of $14.What is the relevant cost of labour for the project?A $400 B $1200 C $1340 D $2340 (2 marks) QQ 59Acontract is under consideration that will require 250machine hours. The variable overhead rate is $6 per machinehour and the company traditionally absorbs fixed overhead at50% of the variable overhead rate. If the contract is accepted,$800 of other indirect costs specific to the project will beincurred.What is the relevant cost of overheads for the project?A

$800 B $1550 C $2300 D $3050 (2 marks) 60The following data apply to a non-current asset. $Net realisable value5,000Historic cost6,000Net present value in use7,500Replacement cost10,000 What is the relevant cost of the asset for decision makingpurposes?A $10,000 B $7,500 C $6,000 D $5,000 (2 marks) 61 Acompany is considering undertaking a project which will require400 kg of a special material, Anignora. The company has 400 kgof Anignora in inventory but cannot obtain any further supplies. If this project is not undertaken, then the company could undertakeproject II which would also require 400 kg of Anignora. Therevenues and costs associated with project II are as follows.Project II revenues and costs$$Revenues55,000LessCosts original purchasecost of 400 kg of Anignora20,000Costs other direct costs25,000(45,000) Profit10,000 The 400 kg of Anignora could also be sold as it is for $16,000. Multiple choice questions Q.22 KAPLAN PUBLISHING QQQ What is the opportunity cost of using 400 kg of Anignora inthe first project? A$10,000B$16,000C$20,000D$30,000 (2 marks) 62 In the recently prepared annual accounts of an organisation,closing inventory of finished goods includes $5,800 for item Q,calculated as follows:$Materials at cost2,300Direct labour2,200Production overheadVariable with labour cost440Fixed860 Factory cost of producing item Q5,800 Soon after the year end, item Q was stolen and the managementwishes to know the relevant cost. Areplacement could be madeduring normal working hours as Adam has spare capacity. Labour is paid on the basis of hours worked. The cost of replacementwould be as in the schedule above except for materials, thereplacement cost of which is now $2,600. The item sells for $9,000. What is the relevant cost of item Q?

A$9,000B$6,200C$5,240D$4,940 (2 marks) questions KAPLAN PUBLISHING Q.23 Q Multiple choice questions Q.24 KAPLAN PUBLISHING 63The budget for the year for a single product firm, was asfollows: $000Materials (replacement cost)3Direct labour5Fixed overheads4 Sales16 Profit4 % of the year's production was lost due to a strike by directlabour. Sales were made from inventory during the strike. The lostproduction is not to be made up due to excessive inventoryholdings. What was the incremental cost of the strike?A $1,200 benefit B $800 benefit C $400 cost D $800 cost (2 marks) Chapter 10:Dealing with limiting factors 64Acompany makes four products W, X, Yand Z. Labour islimited in the forthcoming year to 125,000 man-hours. Each Wtakes 1 hour to produce, each X takes 2 hours, each Ytakes2_ hours and each Z takes 6 hours. Equal numbers of W andZ must be produced and equal numbers of X and Ymust beproduced.WXYZ Contributionper unit ($)10182050Maximum demand15,00010,00010,00015,000 What is the optimum production plan?WXYZA 15,0004,4444,44415,000 B 11,42910,00010,00011,429 C 15,00010,00010,00015,000 D -5,00010,00015,000 (2 marks) QQ 65Acompany has the following production plan for the comingfour weeks. The plan utilises capacity fully. Planned output isequal to the maximum demand per product. Productinformation is as follows:Per Unit ($)WXYZ Selling price 40502535Direct labour 121896Raw material 714513Variable overhead 8686Allocated fixed costs 4526Output (units)100500250400Direct labour is currently paid $3

per hour and the number of labour hours is expected to be severely curtailed during the comingmonth due to industrial action. Which product should be placed first in the productionscheduling for the next month?A W B X C Y D Z (2 marks) 66Acompany has a maximum demand of 1,000 units for each of its four products W, X, Yand Z. Selling prices and costs aregiven below:Per Unit ($)WXYZ Selling price 80606590Direct labour (@ $5 per hr)1015515Raw material (@ $6 per unit)1861824Variable overhead 12776Allocated fixed costs 9776Labour and materials are in short supply. Labour is limited to10,000 hours and materials to 9,000 units. Which garment should be chosen first in the productionschedule? AGarment WBGarment XCGarment YDGarment Z (2 marks) questions KAPLAN PUBLISHING Q.25 QQ 67 Amanufacturing business has correctly scheduled production of itstwo products, so as to maximise profits, using the 7,500 labour hours currently available. What is the effect on profit if another 500 hours becomeavailable at the normal rate of $10 per hour?A 6,000 B 8,400 C 9,200 D 10,000 (2 marks) 68Acompany is faced with a scarce labour resource. Profit willbe maximised by allocating that resource to the products thatmake the most profit per labour hour. Is this statement TRUE or FALSE? A True B False (1 mark) 69Acompany, which aims to maximise profit, manufactures twoproducts, X and Y.

Product information is as follows: Per unitProduct XProduct Y$$ Selling price 5545Material1020Labour1510Spending is limited to $400,000 and $300,000 on material andlabour respectively. Multiple choice questions Q.26 KAPLAN PUBLISHING Product A$ per unitProduct B$ per unit Material2515Labour (@ $10 per hr)1520Variable overhead1216Selling price8275Maximum demand (units)52003800 QQQ 85 Atransport business has 6 lorries in operation, 5 days a week for 50 weeks of the year. Each vehicle is expected to make 4 journeys a day, delivering an average load of 5 tonnes to eachcustomer. The average customer is located 25 kilometres from thetransport headquarters. Fuel and other variable running costs per kilometre travelled (laden or unladen) are budgeted to be $0.50.Other fixed running costs amount to $225,000 per annum. What is the standard running cost per tonne kilometre?A $ 0.45 B $0.50 C $0.77 D $1.25 (2 marks) Chapter 13: Budgeting 86The following statements relate to budgeting: iAforecast is an attempt to predict what will happeniiAbudget is a plan of what is intended to happeniiiAll budgets are prepared in financial termsivThe master budget consists of a budgeted profit and lossaccount and budgeted balance sheetvAflexible budget adjusts both fixed and variable costs for thelevel of activity Which of the following is true?A All statements are correct B Statements i and ii are correct C Statements ii, iii and iv are correct D Statements i, iii and v are correct (2 marks) 87Which of the following statements is true?A The principal budget factor is the person who is responsible for controlling and coordinating the budget process B

Abusiness must always produce its sales budget first, beforeany other budgets can be decided on. C The budget committee consists of managers with finalresponsibility for agreeing the budget. (1 mark) Multiple choice questions Q.32 KAPLAN PUBLISHING QQQ 88 An organisation is preparing its sales budget for the year ended 31December 20Y1. It expects to sell 2000 units of product Aper month. The current sale price is $500 per unit and this willincrease by 10% in June. Demand for Product B is declining. Firstquarter sales are expected to be 4000 units in total and this willdrop by 1000 units per quarter for each of the next three quarters.The selling price will be constant at $300 per unit. Product C willbe introduced in September. Sales are expected to be 500 unitsper month at a selling price of $100 per unit. What is the budgeted sales revenue for the year?A $15,800,000 B $15,850,000 C $15,900,000 D $16,800,000 (2 marks) 89 An organisation is preparing its quarterly budget. It has consistentlymaintained stock levels at 10% of the following month's sales.Budgeted sales for January are 2000 units and sales are expectedto increase by 500 units per month for the following three months. What is the budgeted production in units for February?A 2050 B 2450 C 2500 D 2550 (2 marks) 90The management accountant is preparing the master budgetfor her retail firm. The following information has beensupplied. Sales$300,000Opening stock$40,000Closing stock$60,000Mark-up25% What amount should be budgeted for purchases?A $220,000 B $225,000 C

$240,000 D $260,000 (2 marks) questions KAPLAN PUBLISHING Q.33 QQQ 91An extract from next year's budget for a manufacturingcompany is shown below. Month 3Month 4Sales100,000units120,000unitsClosing stocks of finished goods6,000units8,000unitsClosing stocks of raw materials22,000kg12,000kgEach unit requires 2kg material. What is the budgeted material usage for month 4? A230,000 kgB234,000 kgC240,000 kgD244,000 kg (2 marks) 92 The following information has been supplied in connection with anorganisation's labour and overhead budget: Product alphaProduct betaCost per unitCost per unit$$ Unskilled labour (@$5/hr)1510Skilled labour (@ $8/hr)1624 Total labour cost3134 Budgeted production8,000 units12,000 units What is the total amount of skilled labour hours required inthe period?A 40,000 hours B 48,000 hours C 52,000 hours D 60,000 hours (2 marks) Multiple choice questions Q.34 KAPLAN PUBLISHING QQ Chapter 14:Standard costing 93Acompany's standard labour rate for its factory workers is setat $5 per hour. The standard time allowed for producing one unit is 20 minutes.During the period 4,800 units were produced and the factoryworkers were paid $5.25 per hour. The actual hours worked were1,560. What was the total labour cost variance?A $390 adverse B $190 adverse C

$190 favourable D $390 favourable (2 marks) 94Which of the following would explain an adverse materialsusage variance?A The volume of activity was more than originally expected B Ahigher quality of materials than anticipated was used C There was a major spillage resulting in the loss of rawmaterials (1 mark) The following information relates to questions 95 and 96: The materials budget for producing 5,000 units of product is 25,000litres at $3.30 per litre. In the first month of production the companypurchased 30,000 litres at a cost of $105,000, of which 28,000 litreswere used to produce an actual output of 5,900 units. 95What was the material usage variance?A $9,900 adverse B $650 adverse C $4,950 favourable D $5,250 favourable (2 marks) 96What was the material price variance?A $6,000 adverse B $12,600 adverse C $6,000 favourable D $12,600 favourable (2 marks) questions KAPLAN PUBLISHING Q.35 QQQQ Multiple choice questions Q.36 KAPLAN PUBLISHING The following information relates to questions 97 and 98: Acompanys product results for the month are as follows: ActualBudget Sales units9,5009,000$$Sales revenue104,500108,000Manufacturingcosts at standard76,00072,000 Contribution28,50036,000

97What was the sales price variance?A $3,500 adverse B $9,000 adverse C $9,500 adverse D $9,500 favourable (2 marks) 98What was the sales volume contribution variance?A $1,500 favourable B $2,000 favourable C $6,000 favourable D $7,500 adverse (2 marks) 99Acompany's standard variable overhead rate for manufacturing is $7 per hour and the standard time allowedfor production is 2.5 hours per unit. During the period 3,200 units were produced in 8,320 hours. Thevariable overhead expenditure variance was $1,664 favourable.What was the actual variable overhead rate per hour? A $6.53 B $6.80 C $6.93 D $7.20 (2 marks) QQQ 100If a manufacturing organisation is absorbing fixed overheadson a labour hour basis, the fixed overhead volume variancecan be split into expenditure and efficiency variances. Is this statement TRUE or FALSE? A True B False (1 mark) 101Acompany's budgeted fixed overhead for the last quarter of the financial year was $280,000 for 7,000 units of output. Itactually spent $284,400 manufacturing 7,200 units. What was the fixed overhead volume variance? A $ 8,000 adverse

B $ 4,400 adverse C $ 7,900 favourable D $ 8,000 favourable (2 marks) Appendix: spreadsheets 102The benefit of using a spreadsheet to prepare a budget is thatestimates can be varied without everything having to berecalculated manually. Is this statement TRUE or FALSE? A True B False (1 mark) 103Aspreadsheet is more useful that a database when theprimary objective is to store large amounts of raw data thatneeds to be accessed by multiple users. Is this statement TRUE or FALSE? A True B False (1 mark) questions KAPLAN PUBLISHING Q.37 QQQQ 104Which of the following is not a disadvantage of usingspreadsheets?A Spreadsheets are restricted to a finite number of records, andcan require a large amount of harddrive space for datastorage. B There can be sharing violations among users wishing to viewor change data at the same time. C Spreadsheets do not have the ability to generate graphs andcharts for the analysis of data. (1 mark) 105Which of the following is the least suitable application of aspreadsheet package?A Budgeting and forecasting B Maintenance of customer records C Inventory valuation D Variance analysis (2 marks)

Multiple choice questions Q.38 KAPLAN PUBLISHING QQ