5-quiz questions -- accounting

Question 6

0 / 1 point

Q10-6: BCD Inc sells its products for $12 each. The company’s volume has remained unchanged for some time at 10,000 units per month although it has spare capacity. Production costs are $10 per unit including fixed costs which average $3 per unit for the production volume. A customer has requested a special order of 2,000 of BCD’s products at a special price of $9. BCD should:

Question options:

	Reject the order because there would be a loss of $2,000
	Reject the order because the selling price of $9 is lower than the cost price of $10
	Accept the order because there would be an additional profit of $4,000
	Accept the order because there would be additional revenue of $18,000
Question 8		0 / 3 points

Q11-2: The accounting system which records production costs for a batch of identical goods is:

Question options:

	Custom costing
	Batch costing
	Job costing
	Process costing
Question 9		0 / 5 points

Q11-3: Little Known Tax, Ltd prepares tax returns for clients. The firm employs six bookkeepers who cost the firm £10,000 in total each week. Each bookkeeper is expected to charge 30 hours per week to client jobs. At the end of the week the total hours charged by the six bookkeepers to client jobs is 150. The cost of spare capacity is closest to:

Question options:

	£1668
	£30
	£150
	£5555
Question 10		0 / 5 points

Q11-4: Last Group has a rental cost of €25,000 per month with a four-year lease term. Casual staff are employed on a weekly basis to carry out telephone sales. The cost of casual staff is €12,000 per month and telephone call costs are €5,000 per month. An offshore call centre has offered to carry out the telephone sales activity from its own premises and using its own staff and telephone services for a fixed payment of €15,000 per month. The call centre’s outsourcing proposal should be:

Question options:

	Accepted because the relevant cost is €42,000 compared to €40,000 for in-house telephone sales
	Accepted because the relevant cost is €15,000 compared to €17,000 for in-house telephone sales
	Rejected because the relevant cost is €45,000 compared to €42,000 for in-house telephone sales
	Rejected because the relevant cost is €17,000 compared to €15,000 for in-house telephone sales
Question 13		0 / 6 points

Q12-3: Using the information from Q12-2 above, what is the relevant cost of the market research project?

Question options:

	9,690
	11,290
	17,390
	11,740