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Test 2 - Jan 2022
Test 2 - Jan 2022
2. ABC Sdn Bhd manufactures a product that has a variable cost of RM25 per unit. Fixed
costs total RM1,000,000 allocated on the basis of the number of units produced. Selling
price is computed by adding 25% mark-up to full cost. How much should the selling price
be per unit for 200,000 units?
a. RM31.25
b. RM37.50√
c. RM42.00
d. RM30.00
2 marks
3. Below are the factors which may effects the pricing decision EXCEPT for:-
a. Economic condition
b. Government regulation
c. Demand of the product
d. Understandable user√
1 mark
4. Mawar Suci Bhd produce a product called ACE for which the following information is
relevant:–
RM
Direct material 2.40
Direct labor 1.80
Production Overhead – variable 0.90
– fixed 1.00
Administration Overhead – Variable 0.80
– Fixed 1.25
Selling overhead – variable 0.10
– Fixed 0.50
Total 8.75
Calculate the selling price of ACE if the pricing policy is to add 45% mark-up on total
production costs.
a. RM12.69
b. RM3.94
c. RM8.85√
d. RM15.91
2 marks
5. Refer Q4. Calculate the selling price if it is set at marginal cost plus 25% margin.
a. RM11.67
b. RM8.00 √
c. RM7.50
d. RM10.94
2 marks
6. Maju Jaya Bhd produces a product called MJ01. The following information relates to a unit of
MJ01.
RM
Material 5.50
Labor (RM2/he @ 3 hours) 6.00
Production Overhead – variable 4.20
- Fixed 2.40
Total 18.10
7. Refer Q6. Labor is in short supply. They are currently being employed to make other product
B which is provide a contribution of RM5.00 per unit. Each unit of B requires 2 hours of the
same type of labor. Calculate the minimum price of the product.
a. RM15.70
b. RM23.20√
c. RM23.10
d. RM28.10
3 marks
8. Minimum pricing is suitable when:-
a. There is a need to clear stock
b. To contract for special order
c. To improve market share
d. All of the above √
1 mark
9. Application of full cost pricing is suitable for the following condition EXCEPT:-
a. Products are made based on specification by the customers.
b. It is a difficult to make estimations.
c. To compete with competitors.√
d. The main objectives is to make profit after making sure that fixed costs are covered.
1 mark
10. Advantages of marginal cost plus pricing is…..
a. Pricing decisions become standardized.
b. The difficulty to absorb fixed cost to product can be avoided.√
c. It ensures all costs are covered and reasonable rate of return is achieved.
d. The difficulty of estimating demands can be avoided.
1 mark
(Total 15 marks)