Page 289 - BA2 Integrated Workbook STUDENT 2018
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Supplementary objective test questions
CHAPTER 10 – PREPARING ACCOUNTS AND REPORTS FOR
MANAGEMENT
10.1 A company makes customised machinery to customers' specifications and uses
job costing. The data for a period are:
Job AA10 Job BB15 Job CC20
$ $ $
Opening WIP 26,800 42,790 0
Material added in period 17,275 0 18,500
Labour for period 14,500 3,500 24,600
The budgeted overheads for the period were $127,800. Overheads are absorbed
on the basis of labour cost.
Job BB15 was completed and delivered during the period.
The company wishes to earn a 25% profit margin.
What is the selling price of job BB15?
A $61,720
B $70,988
C $75,720
D $57,863
10.2 Objectives in a not-for-profit organisation are referred to as the three Es.
What are the three Es?
A Effectiveness, Economy, Efficiency
B Effectiveness, Environmental, Efficiency
C Ecological, Equality, Efficiency
D Ecological, Economy, Efficiency
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