EDBA COST ACCOUNTING 1

SHORT TEST

STUDENT SELF TESTING 1

1. Identify which of the following costs are direct and which are indirect for a bakery.
- Flour of baking bread
- Wages cost of baker
- Depreciation of ovens
- Warehouse rental
- Costs of canteen for employees
- Petrol for delivery vehicle

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__________________
__________________
__________________
__________________
__________________
(6 marks)

2. State the cost behaviour for each of the following: (Variable, Fixed or Mixed costs)
- Telephone bill
- Business license renewal costs
- Nuts and bolts used in manufacturing
- Sales commission for marketing personnel
- Wood used as raw material

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_______________________
_______________________
_______________________
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(5 marks)

3. Are the following statements true or false?

True

False

- Electricity costs is a variable cost because they

will different according to the production volume.

________

_________

- A semi variable cost is fixed for a certain level

of activity and then changes to a new fixed level.

________

_________

- The fixed cost per unit of output decreases as output

increase.

________

_________
(3 marks)

4. ABC Co has a manufacturing capacity of 10,000 units. The flexed production cost budget of the
company is as follows:
Capacity
Total production costs

60%
$11,280

100%
$15,120

What is the budgeted total production cost if it operates at 85% capacity?

$

(2 marks)

EDBA COST ACCOUNTING 1

SHORT TEST
5. Good information should be: (Tick all those apply)
Complete
Extensive
Relevant
Accurate

(
(
(
(

)
)
)
)

(2 marks)

6. Identify which of the following are features of management accounting information and which are
features of financial accounting information. (Tick for whichever is relevant)
Management
accounting

Financial
accounting

- Companies are limited by law to

prepare this

__________

_________

- It is concerned with future results as well as

historical information

__________

_________

- Information required for decision making

__________

_________
(3 marks)

7. The total cost for output of 8,400 units in a period is $106,250 and the total period fixed cost is
$41,990.
Required: Using the above information and formula, calculate:
(i)
(ii)
(iii)

The variable cost per unit;

The total cost for output of 8,660 units in a period;
The cost per unit for output of 8,500 units in a period.

(2 marks)
(2 marks)
(2 marks)
(Total: 6 marks)