Question 11

Which of the following statements is true?
  • Question 12

    An agricultural company uses activity based costing to charge overheads to its three products. One of the main activities is purchasing, budgeted details of which are as follows:
    Additional budgeted data:

    What is the budgeted purchasing overhead cost per kg of Product S?
    Give your answer to 2 decimal places.

    Question 13

    A company manufactures three products X, Y and Z.
    The company is currently operating at full capacity and is unable to meet the full sales demand for Product Z.
    According to the latest management accounts, Product Y is loss making, whilst X and Z both make strong positive contributions.
    Which of the following is relevant when making a decision on whether or not to discontinue the manufacture of Product Y?
  • Question 14


    Select the benefits to a company of using sensitivity analysis in investment appraisal.
    (Select all the true statements.)
  • Question 15

    A company has only 10,100 hours of skilled labour available next period.
    Data for its three products for next period are as follows.

    At least 500 units of each product must be sold each period.
    No inventories are held.
    How many units of Product X should be manufactured next period in order to maximise profit?