19.Using the high-low method, the estimate of supplies cost at 1,000 units of productionis A.GH 4,460 ȼVARIABLE = (%7100-GH2700)/(1600-600)=GH4.40 therefore 7100-(1600*4.40)= GH60 total = GH60+40x = GH60+(GH4.40 X 1000) =GH4460B. GH 2,700ȼC. GH 4,900 ȼD. GH 7,100ȼ 20.If at a given volume total costs and fixed costs are known, the variable costs per unit maybe computed as: 21.Fixed cost per unit is GH9 when 20,000 units are produced and GH6 when 30,000 ȼȼunits are produced. What is the total fixed cost when nothing is produced? 22.Which of the following are benefits of budgeting? I.It helps coordinate the activities of different departmentsII.It fulfils legal reporting obligationsIII.It establishes a system of controlIV.It is a starting point for strategic planning 4 | P a g e
23.Which of the following is not a benefit of budgeting? A.Management can plan ahead.B.An early warning system is provided for potential problems. C.It enables disciplinary action to be taken at every level of responsibility.D.The coordination of activities is facilitated. 24.The essentials of effective budgeting do not include: 25. The following statements relate to the advantages that linear regression analysis has over the high low method in the analysis of cost behaviour:1. the reliability of the analysis can be statistically tested2. it takes into account all of the data3. it assumes linear cost behaviourWhich statements are true? A 1 onlyB 1 and 2 onlyC 2 and 3 onlyD 1, 2 and 326.The following statements relate to the participation of junior management in setting budgets:1. It speeds up the setting of budgets2. It increases the motivation of junior managers 3. It reduces the level of budget padding Which statements are true? A 1 onlyB 2 onlyC 2 and 3 only5 | P a g e
D 1, 2 and 327.Which of the following words does not describe a main focus of management accounting?
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- Spring '20
- Dr. ASRAVOR
- Financial Accounting