MA

As a result of completing a transaction, Deyal Co will receive an economic benefit in the future. Which of the following items of financial statements should now berecognized?A . IncomeB . EquityC . AssetD . LiabilityView AnswerAnswer: C

SolutionCo has prepared budgets based on the following assumptions: Sales volumethree months to 30 September 2011:85,720 units three months to 31 December 2011:94,560 units Inventory volumeat 1 July 2011:10% of sales for the next three months at 1 October 2011:75% of sales for the next three months What is the...

On the first day of the new financial year, the value of the non-current assets held by Vieta Co increased because the directors implemented a policy of revaluation. How will the company’s return on capital employed (ROCE) and net profit margin ratios for the year be affected?A . ROCE =...

The marketing director of Peek Co has suggested that, despite an anticipated increase in variable cost per unit of $2, the selling price of the product manufactured by one of the divisions should be reduced by 3% to increase sales volume. The product is currently sold for $110 per unit...

The Getwellquick Hospital has total costs of $1m for 20X1. During 20X1, 200,000 patients were treated and doctors were paid $500,000. What is the most appropriate cost per unit for the hospital to use?A . $0.20B . $2.50C . $5.00D . $7.50View AnswerAnswer: C

A division manufacturing a single product which sells for $325 has the following unit cost structure: $ Direct materials95 Directlabor78 Variable overheads56 Share of fixed costs45 Total cost274 In the coming period, the budgeted production volume is 10,000 units. What is the budgeted breakeven sales volume (to the nearest unit)?A...

At 30 April 2010, the net assets of Barangia Co had a book value of $22,500,000 and an economic value of $29,900,000. The company’s weighted average cost of capital is estimated to be 16% per annum, and finance can currently be obtained at a rate of 14% per annum. Net...

Sun Mics' e-procurement system shows the bidding to be placed over the Internet, and rival bids for all suppliers. Which of the following will be an advantage of e-procurement system for Sun Mics’?A . Intermediaries in the supply chain might be reluctant to collaborate, due to a fear that they...

Consider the following statements relating to activity-based costing (ABC) in a manufacturing environment: (i) ABC eliminates the use of volume as a means of measuring costs (ii) More accurate cost estimates will always be produced using ABC than absorption costing Which of the following combinations is correct?A . Statement (i)...

Bush has been asked by his bank to produce a budgeted income statement for the six months ending on 31 March 2014. He forecasts that monthly sales will be $3,000 for October, $4,500 for each of November and December, 2013 and $5,000 per month from January 2014 onwards. Selling price...