accounting multiple choice question, choose only one answer

Which ONE of the following statements best describes a variable cost? Select one: O a. Salary of the Managing Director of $80,000 per annum which is not linked to volume of production o b. Rent of $25,000 for space large enough to make 2000 units O c. Telephone costs of $500 quarterly rental plus charges of $2 per international call O d. Royalty charge of $5 per unit that increases with volume at a constant rate The following two statements are about make or buy decisions where the business is considering outsourcing the whole of production of one component. Select whether the following statements are true or false. Statement One: The amount received, if the company was to sell the old machinery not needed anymore, would be classified as a relevant inflow. Statement Two: The original cost of the production equipment is a relevant cost. Select one: O a. Statement 2 is true, and Statement 1 is false ob. Both statements are true O c. Statement 1 is true, and Statement 2 is false O d. Both statements are false Rainbow Ltd has been offered a contract that will last six months. The contract will use two employees who are currently on zero-hours contracts paid 24 per hour each. The hours to be spent on the contract will be 1647 hours. The price of the contract is 150,000. The rent on a building used for the contract costs 117649 per year, and the space allocated to the contract is 26% of the total floor area; the rental contract is not affected by the acceptance or rejection of the contract. Other costs for the contract include depreciation of 21984 on a machine. If the machine is not used on the contract it will be scrapped as it has no other use. Using relevant costing techniques, what is the benefit to Rainbow Ltd of accepting the contract? Select one: O 110472 O 73194 O 132456 O 88488 Management accounting differs significantly from financial accounting simply by what information they produce and who they produce it for. Identify which ONE of the following statements has characteristics that relate to management accounting. Select one: O a. This system produces statements that have a variety of external users o b. This system produces statements that often deal with planning for the future O c. This system produces statements that must comply with company law and regulation O d. This system produces statements that are primarily for the shareholders