1. The most suitable definition of standard costing is a system of budgeting where A. costs are assigned to individual m

[answerhappygod]

1. The most suitable definition of standard costing is a systemof budgeting where
A. costs are assigned to individual managers in order toallocate responsibility for variances
B. pre-determined costs for the actual level of activity arecompared with actual costs and variances are analysed.
C. all activities are budgeted from a zero base withoutreference to previous periods' results
D. pre-determined costs for the budgeted level of activity arecompared with actual costs and variances are analysed
2. Suppose that the cost of producing X units of a product in amanufacturing company is
F + VX where F = Total fixed cost and V = Variable cost perunit. The actual cost of producing X units is Co and this increasesto C, when the actual number of units increases to X1. Using thehigh-low method which formula below represents the estimated valueof the unit variable cost, V?
A. (C1 – Co) / (X1 – Xo)
B. (X1 – Xo) / (C1 – Co)
C. (X1 – Xo) / (Co-C1)
D. (C1 – Co) / (Xo-X1)
3.Jayla is a manufacturer of a single product. Forecasts for thenext year show sales of 10,000 units and production of 10,300units. Finished goods Inventory at the beginning of the year is 800units
Two different materials are used in the manufacturingprocess:
Material
Cost
Per unit of production
Opening inventory (kg)
Forecast closing inventory (kg)
X
£1,5/kg
5kg
10,000
12,000
Y
£0,75/kg
8kg
16,000
19,200
What is the value of the budgeted material purchases for theyear?
A £139,050
B. £144,450
C. £148,500
D £153,900