QUESTION 1: Concepts (10 marks)
Number Statement Answer
OSCAR THE TUTOR
Direct material and direct labour are
1.1 Prime costs
combined to form _______ +27737560989
for FAC MAC ECS DSC TAX QMI FIN INV
BNU STA tutorialsOSCAR THE TUTOR
_______ per unit will remain
1.2 unchanged, regardless of the number of Fixed cost +27737560989
units produced. for FAC MAC ECS DSC TAX QMI FIN INV
BNU STA tutorials
If the actual cost exceeds the absorbed
1.3 costs, we say there was an _______ of Under absorption
overheads.
_______ treats only variable cost as
1.4 Marginal costing
product cost.
In order to ensure compliance with IFRS,
_______ must be treated as period costs Marketing and distribution
1.5
and expensed in the period in which costs
they are incurred.
_______ interest is to assess the ability
1.6 of the company to pay interest on loans Lenders'
and to repay loans.
The _______ is the quantity of inventory
that should be ordered every time an Economic order quantity
1.7
order is placed so that the total (EOQ)
inventory cost is minimised.
, _______ compares the performance of
1.8 Cross-sectional analysis
the company with industry standards.
_______ refers to the methods that the
1.9 company uses to collect accounts that Collection policy
are past their due date.
The company's ________ usually
1.1 contains a mission, vision, and value Strategic plan
statement.
QUESTION 2: Cost Accounting (45 marks)
2.1 Major risk that the soap-making operation may pose for Lerato (2 marks)
One major risk is operational risk related to the handling of chemicals and raw materials. For example, some essential oils and
soap ingredients can be caustic or harmful if mishandled, potentially causing injury to workers or product quality issues.
2.2 Essential stakeholders (2 marks)
Internal stakeholder: Factory supervisor (responsible for overseeing production) External stakeholder: Customers/retail
outlets (who purchase the soap products)
OSCAR THE TUTOR
+27737560989
for FAC MAC ECS DSC TAX QMI FIN INV BNU STA tutorials
Number Statement Answer
OSCAR THE TUTOR
Direct material and direct labour are
1.1 Prime costs
combined to form _______ +27737560989
for FAC MAC ECS DSC TAX QMI FIN INV
BNU STA tutorialsOSCAR THE TUTOR
_______ per unit will remain
1.2 unchanged, regardless of the number of Fixed cost +27737560989
units produced. for FAC MAC ECS DSC TAX QMI FIN INV
BNU STA tutorials
If the actual cost exceeds the absorbed
1.3 costs, we say there was an _______ of Under absorption
overheads.
_______ treats only variable cost as
1.4 Marginal costing
product cost.
In order to ensure compliance with IFRS,
_______ must be treated as period costs Marketing and distribution
1.5
and expensed in the period in which costs
they are incurred.
_______ interest is to assess the ability
1.6 of the company to pay interest on loans Lenders'
and to repay loans.
The _______ is the quantity of inventory
that should be ordered every time an Economic order quantity
1.7
order is placed so that the total (EOQ)
inventory cost is minimised.
, _______ compares the performance of
1.8 Cross-sectional analysis
the company with industry standards.
_______ refers to the methods that the
1.9 company uses to collect accounts that Collection policy
are past their due date.
The company's ________ usually
1.1 contains a mission, vision, and value Strategic plan
statement.
QUESTION 2: Cost Accounting (45 marks)
2.1 Major risk that the soap-making operation may pose for Lerato (2 marks)
One major risk is operational risk related to the handling of chemicals and raw materials. For example, some essential oils and
soap ingredients can be caustic or harmful if mishandled, potentially causing injury to workers or product quality issues.
2.2 Essential stakeholders (2 marks)
Internal stakeholder: Factory supervisor (responsible for overseeing production) External stakeholder: Customers/retail
outlets (who purchase the soap products)
OSCAR THE TUTOR
+27737560989
for FAC MAC ECS DSC TAX QMI FIN INV BNU STA tutorials
