Firefighters risk serious and potentially fatal accidents whenever they attend an incident.
Which of the following statements is correct?
A new product is being manufactured for the first time. The first unit required 600 minutes of labor to manufacture. It is expected that there will be a 90% learning curve for the first 20 units.
The learning index for a 90% learning curve is - 0.152.
Calculate the expected labor time to manufacture the 10th unit.
Your answer should be given to the nearest whole minute.
In order to support decision making, management accounting information categorizes costs in a variety of ways.
Responsibility accounting primarily distinguishes between costs on the basis that they are either:
An organization wishes to achieve cost reductions for a product it already has in production without affecting the customer's perception of the product.
It has decided to carry out a systematic examination of the factors affecting the cost of the product in order to identify ways of achieving the specified purpose at lower cost while maintaining the required standard and quality.
Which of the following correctly identifies the activity that the organization is undertaking?
The following cost of quality report has been prepared for the latest period.
What is the difference between the cost of conformance and the cost of non-conformance?
For a complex and repetitive task, which of the following correctly describes a steep learning curve?
A cost centre manager's performance is monitored based on a comparison of actual and budgeted cost. A summary performance report for the latest period is shown below.
The actual costs include:
*$28,000 for allocated head office costs.
*$18,000 payment for a rental agreement entered into by the cost centre manager two years ago.
*$34,000 for depreciation.
What is the cost centre manager's controllable actual cost for the period?
Give your answer to the nearest $000.
A company uses activity based costing. The total production overheads of $16,050 for the next period are for set up costs of $6,450 and quality inspection costs of $9,600. The company produces two products, Product F and Product G. Details relating to the next period are as follows:
A new customer has offered to purchase Product F for $28.00 per unit. The only costs incurred would be those shown above.
What is the profit per unit of Product F that would be gained by accepting the offer? Give your answer to two decimal places.
A product requires one each of three different components.
Faulty components are identified only at the end of the manufacturing process.
The following average fault rates have been identified:
Component A – 1 in 100
Component B – 1 in 20
Component C – 1 in 10
The probability that a unit of finished product contains no faulty components is:
Which of the following activities are included within activity based management (ABM)?
1. Cost reduction
2. Product design decisions
3. Variance analysis
4. Operational control
5. Performance evaluation
