MAC2601
ASSIGNMENT 1
FIRST SEMESTER 2023
BY: MTHOMBENI: 0767297208
1
,Question 1
Carefully consider the four statements below and then select the correct alternative.
A The management accountant always reports to the financial accountant of the company.
B The management accountant is responsible for ensuring that the annual financial statements comply
with International Financial Reporting Standards.
C Management accountants provide information that managers need for planning.
D The management accountant is responsible for controlling expenses in the company.
a.
Only statement C is correct.
b.
Only statements C and D are correct.
c.
Only statements A and B are correct.
d.
Only statement B is correct.
Question 2
Non-manufacturing costs expensed in the income statement in the period that they are incurred
are called …
a.
product costs.
b.
manufacturing costs.
c.
period costs.
d.
conversion costs.
2
,Question 3
What is a common element of both prime and conversion costs?
a.
Direct labour
b.
Fixed production overheads
c.
Variable production overheads
d.
Direct materials
Question 4
Which one is a method used for apportioning production overheads?
a.
Process costing method
b.
Traditional costing method
c.
Job costing method
d.
Standard costing method
Question 5
The break-even point on the cost-volume-profit (CVP) graph occurs where ...
a.
total variable costs are equal to total contribution margin.
b.
total profit is equal to total fixed costs.
c.
total contribution margin is equal to total fixed costs.
d.total profit is equal to total costs.
3
, Question 6
The general term that refers to any group or individual who can affect, or is affected by, an
organisation’s activities is …
a.
stakeholders.
b.
employees.
c.
shareholders.
d.
managers.
Question 7
Which one is not a basis for the measurement of production (manufacturing) costs?
a.
Actual costing basis
b.
Budget costing basis
c.
Normal costing basis
d.
Standard costing basis
Question 8
Which one of the following is not a cost-volume-profit analysis (CVP analysis) assumption?
a.
All the units manufactured are sold.
b.
CVP analysis applies to short-term planning only.
c.
The analysis is always done out of the relevant range.
4
ASSIGNMENT 1
FIRST SEMESTER 2023
BY: MTHOMBENI: 0767297208
1
,Question 1
Carefully consider the four statements below and then select the correct alternative.
A The management accountant always reports to the financial accountant of the company.
B The management accountant is responsible for ensuring that the annual financial statements comply
with International Financial Reporting Standards.
C Management accountants provide information that managers need for planning.
D The management accountant is responsible for controlling expenses in the company.
a.
Only statement C is correct.
b.
Only statements C and D are correct.
c.
Only statements A and B are correct.
d.
Only statement B is correct.
Question 2
Non-manufacturing costs expensed in the income statement in the period that they are incurred
are called …
a.
product costs.
b.
manufacturing costs.
c.
period costs.
d.
conversion costs.
2
,Question 3
What is a common element of both prime and conversion costs?
a.
Direct labour
b.
Fixed production overheads
c.
Variable production overheads
d.
Direct materials
Question 4
Which one is a method used for apportioning production overheads?
a.
Process costing method
b.
Traditional costing method
c.
Job costing method
d.
Standard costing method
Question 5
The break-even point on the cost-volume-profit (CVP) graph occurs where ...
a.
total variable costs are equal to total contribution margin.
b.
total profit is equal to total fixed costs.
c.
total contribution margin is equal to total fixed costs.
d.total profit is equal to total costs.
3
, Question 6
The general term that refers to any group or individual who can affect, or is affected by, an
organisation’s activities is …
a.
stakeholders.
b.
employees.
c.
shareholders.
d.
managers.
Question 7
Which one is not a basis for the measurement of production (manufacturing) costs?
a.
Actual costing basis
b.
Budget costing basis
c.
Normal costing basis
d.
Standard costing basis
Question 8
Which one of the following is not a cost-volume-profit analysis (CVP analysis) assumption?
a.
All the units manufactured are sold.
b.
CVP analysis applies to short-term planning only.
c.
The analysis is always done out of the relevant range.
4
