[1] [2] Short-term decision making differs from long-term decision making because: a) Short-term decision making assumes capacity is fixed b) Short-term decision making assumes that variable costs are fixed c) Short-term decision making assumes selling prices are fixed d) Short-term decision making assumes that accounting information is fixed 1 Mark Assume the following information for 2017: Direct materials used 90,000 Direct labour 130,000 Factory overhead 150,000 Beginning work-in-progress inventory 15,000 Beginning finished good inventory 20,000 Ending work-in-progress inventory 42,000 Seling and administrative expenses 37,500 What was the cost of goods manufactured during the year? a) 370,000 b) 365,000 c) 343,000 d) 333,000 5 Marks If the investment Internal Rate of Return is bigger than the required rate of return: a) The investment should be accepted b) The investment should be rejected c) The investment should be put on hold d) A decision should be taken after assessing the Net Present Value 1 Mark [3]