Question 11

Sales mix affects profitability because:

Question 11 options:

a)

Different products have different prices

b)

Different products have different costs

c)

Different products have different volumes of sales

d)

All of the above

Question 12

A standard cost is:

Question 12 options:

a)

The actual quantities of material and labor multiplied by the costs of material and labor

b)

The standard quantities of material and labor multiplied by the costs of material and labor expressed per unit

c)

The standard quantities of material and labor multiplied by the costs of material and labor

d)

The actual quantities of material and labor multiplied by the costs of material and labor

Question 13

Goods that have begun the production process but which have not yet been completed are:

Question 13 options:

a)

Raw materials

b)

Inventory

c)

Work in progress

d)

Finished goods

Question 14

The accounting system which records production costs for a batch of identical goods is:

Question 14 options:

a)

Custom costing

b)

Process costing

c)

Job costing

d)

Batch costing

Question 15

Accounting for professional service firms differs from manufacturing mainly because:

Question 15 options:

a)

There is no inventory in services

b)

There are no materials used in services

c)

Services are intangible

d)

Services are heterogeneous