answer as MCQ

Question $11$ pts

How is a fixed cost defined?

Group of answer choices

A cost that stays the same irrespective of changes in the level of activity.

A cost that changes with changes in the level of activity.

A cost that stays the same per unit as the number of units changes.

A cost that is a fixed proportion of profit.

Flag question: Question $2$

Question $21$ pts

Gourmet Bakery makes one $(1)$ item only, a gourmet pie. Each pie has a variable cost of $$1\mathrm{.}50$ and sells for $$5\mathrm{.}50.$ Fixed costs per week for Gourmet Bakery are $$14,000$ per week. Gourmet Bakery has the capacity to make $6,000$ pies per week, but at present is making and selling $5,200$ pies per week. Gourmet Bakery$$s weekly margin of safety is:

Group of answer choices

$800$ pies

$1,700$ pies

$2,500$ pies

$6,000$ pies

Flag question: Question $3$

Question $31$ pts

The contribution margin is so called because it contributes to:

Group of answer choices

variable costs and fixed costs.

fixed costs and profit.

variable costs and profit.

variable costs, fixed costs and profit.

Flag question: Question $4$

Question $41$ pts

How will fixed cost be affected if production increases by $20\%?$

Group of answer choices

It will increase by more than $20\%$

It will decrease by $20\%$

It will increase by $20\%$

It will remain the same

Flag question: Question $5$

Question $51$ pts

If CozyFam Pty Ltd sells $5,000$ chairs and $3,000$ tables, what is the sales mix?

Group of answer choices

$0\mathrm{.}8$ chairs, $0\mathrm{.}2$ tables

$0\mathrm{.}625$ chairs, $0\mathrm{.}375$ tables

$0\mathrm{.}2$ chairs, $0\mathrm{.}8$ tables

None of the options are correct

Flag question: Question $6$

Question $61$ pts

Which of the following statements about opportunity costs is true?

Group of answer choices

Opportunity costs are avoidable costs.

Opportunity costs are not relevant in decision making.

Opportunity costs are the costs of forgoing benefits that would be available if the resources had been used in the next best alternative.

All of the statements are true.

Flag question: Question $7$

Question $71$ pts

Which of the following statements is correct?

Group of answer choices

Full costing uses only past costs.

Full costing tends to use past costs and restricts its consideration of future costs to outlay costs.

Full costing uses only future costs.

None of the above are correct.

Flag question: Question $8$

Question $81$ pts

Which of the following statements is correct?

Group of answer choices

Activity$-$based costing provides more$-$accurate product costs but is costlier than alternative systems.

Activity$-$based costing is less costly than alternative systems and it provides better information for decision making.

Activity$-$based costing is less costly than alternative systems and it provides more$-$accurate product costs.

Activity$-$based costing is costlier than alternative systems, but it does not provide better information for decision making.

Flag question: Question $9$

Question $91$ pts

Which of the following is not an example of an indirect cost?

Group of answer choices

Raw materials.

Salesman's motor vehicle costs.

Supervisor salaries.

Factory rent.

Flag question: Question $10$

Question $101$ pts

Which of the following statements regarding overhead costs is not true?

Group of answer choices

Overhead costs might be traceable to an individual cost object but it is not cost effective to do so$.$

Overhead costs are only allocated to a single cost object.

Overhead costs are also known as indirect costs.

All of the statements about overhead costs are true.

Flag question: Question $11$

Question $111$ pts

What time frame does a budget process usually focus on$?$

Group of answer choices

One year

One month

One week

One day

Flag question: Question $12$

Question $121$ pts

Which of these is not a commonly prepared budget?

Group of answer choices

Asset amortisation budget

Operating budget

Manufacturing overhead budget

Inventory budget

Flag question: Question $13$

Question $131$ pts

The government's Department of Education and Training would be unlikely to prepare which type of budget?

Group of answer choices

Production budget

Expenses budget

Cash budget

Program budget

Flag question: Question $14$

Question $141$ pts

Which of the following does not appear in the cash budget?

Group of answer choices

Payment of interest on a loan.

Recognition of depreciation expenses.

Payment for inventory.

Payment of wages.

Flag question: Question $15$

Question $151$ pts

Flynn Agriculture Pty Ltd is planning to purchase a combine harvester at a cost of $$550,000.$ The planned delivery date is $1$ June $2024,$ with a deposit of $$35,000$ to be paid on $1$ December $2023.$ The amount that will appear in the cash budget for December $2023$ is:

Group of answer choices

$$585,000$ inflow.

$$515,000$ outflow.

$$35,000$ outflow.

$$550,000$ outflow.