1. When using information for internal purposes, management is more concerned

1. When using information for internal purposes, management is more concerned with information that is

A  timely, relevant and reliable.

B  completely objective and verifiable.

C  exclusively internally generated.

D  exclusively externally focused.

2. Animus Ltd is a mining company. Which of the following is an example of ‘planning’?

A  Awarding bonuses to AimusLtd’s top performing executives

B  Setting production targets for the company’s new mines

C  Developing correction actions to respond to

D  lower-than-expected production levels in the existing mines

Pursuing legal actions against environmental activists who stole mining equipment

3. Which of the following activities is LEAST LIKELY be considered to be a non-value-added activity in a factory that produces jeans?

A  Rescheduling production

B  Moving materials

C  Sewing in zippers

D  Inspecting jeans

4. Which of the following activities would MOST LIKELY be classified as a non-value-added activity in a factory that manufactures microwave ovens?

A  Inserting glass shelves into the frames

B  Storing finished goods

C  Installing timing devices

D  Conducting tests in line with ISO certification requirements

5. Which of the following activities are generally value-added activities?

A  i and ii

B  iii and iv

C  i and iv

D  ii and iv

6. From the following list of costs for a kitchen manufacturer, determine the amount of value-added cost.

A  $57 000

B  $54 000

C  $58 000

D  $59 000

7. The monthly cost of renting manufacturing equipment is:

part of conversion cost and a period cost

part of prime cost and an inventoriable cost

part of prime cost and a period cost

part of conversion cost and an inventoriable cost

8. Idle time is:

Select one:

A  frequently an avoidable cost

B  classified as overhead

C  caused by events such as equipment breakdown and new set-ups of production runs

D  All of the given answers

9. Forecasting a cost at a particular level of activity is called:

A  cost estimation

B  cost prediction

C  costbehaviour

D  cost functions

10. Costs that remain fixed over wide ranges of activity but jump to a different amount outside that range are called:

A  step-fixed costs

B  step-variable costs

C  semivariable costs

D  curvilinear costs