F2 MA - Ch 8 & 9

Which of the following would be appropriate cost units for a passenger coach company?

(i) Vehicle cost per passenger-kilometre

(ii) Fuel cost for each vehicle per kilometre

(iii) Fixed cost per kilometre

• (i) only

• (i) and (ii) only

• (i) and (iii) only

• (ii) and (iii) only

The following information is available for Hotel Co for the latest thirty day period.

Number Of rooms available per night - 40%

Percentage occupancy achieved - 65%

Room servicing cost incurred - $3,900

What was the room servicing cost per occupied room-night last period, to the nearest $?

Annie is to set up a small hairdressing business at home. She anticipates working a 35—hour week and taking four weeks' holiday per year. Her expenses for materials and overheads are expected to be $3,000 per year, and she has set herself a target profit of $18,000 for the first year.

Assuming that only 90% of her working time will be chargeable to clients, what price should she charge for a 'colour and cut' which would take 3 hours?

• 13.89

• 35.71

• 37.50

• 41.67

Which of the following are likely to use service costing?

(i) A college

(ii) A hotel

(iii) A plumber

• (i), (ii) and (iii)

• (i) and (ii)

• (ii) only

• (ii) and (iii) only

Which of the following would be considered a service industry?

(i) An airline company

(ii) A railway company

(iii) A firm of accountants

• (i) and (ii) only

• (i) and (iii) only

• (i), (ii) and (iii)

• (ii) and (iii) only

The following information relates to a management consultancy organisation:

Salary cost per hour for senior consultants - 40

Salary cost per hour for junior consultants - 25

Overhead absorption rate per hour applied to all hours - 20

The organisation adds 40% to total cost to arrive at the final fee to be charged to a client.

Assignment number 789 took 54 hours of a senior consultant's time and 110 hours of junior consultants' time.

What is the final fee to be charged for Assignment 789?

• 6874

• 10696

• 11466

• 12642

Last gear, Bryan Air carried excess baggage of 250,000 kg over a distance of 7,500 km at a cost of $3,750,000 for the extra fuel.

What is the cost per kg-km?

• $0.002 per kg-km

• $2.00 per kg-km

• $33.33 per kg-km

• $500.00 per kg-km

A product is in the stage of its life cycle which is tgpified by falling prices but good profit margins due to high sales volumes.

What stage is it in?

• Growth

• Maturity

• Introduction

• Decline

In what stage of the product life cycle are initial costs of the investment in the product typically recovered?

• Introduction

• Decline

• Growth

• Maturity

How is target cost calculated?

• Desired selling price — actual profit margin

• Market price — desired profit margin

• Desired selling price — desired profit margin

• Market price — standard profit margin