Management Accounting

Which of the following would be classed as indirect labour?

• Assembly workers in a company manufacturing televisions

• A stores assistant in a factory store

• Plasterers in a construction company

• An audit clerk in firm of auditors

Total contribution is:

• Total revenue, less all the variable production costs

• Total revenue, less all production costs

• Total revenue, less all the variable costs

• Total revenue, less all fixed costs

A manufacturing firm is very busy and overtime is being worked.

The amount of overtime premium contained in direct wages would normally be classified as:

• Part of prime cost

• Production overheads

• Direct labour costs

• Administrative overheads

A company absorbs overheads on machine hours. In a period, actual machine hours were 17,285, actual overheads were RM496,500 and there was under absorption of RM12,520. If budgeted overheads were RM504,280 calculate the budgeted machine hours:

• 28 hrs

• 18,010 hrs

• 17,285 hrs

• 19,000 hrs

A clothing shop buys children’s school uniforms at RM25 each. They would like to make a profit margin of 20%. What price should they charge?

• RM31.25

• RM30.00

• RM125.00

• RM27.00

John runs a market stall, and marks-up all his goods by 10% of the cost. If he sells an item for RM12, what will the profit be?

• RM1.09

• RM1.20

• RM1.33

• RM2.00

Using the following information, what would the breakeven number of units be for the period?

Fixed costs                   = RM150,000

Total contribution           = RM500,000

Total units sold             = 10,000

• 300 units

• 300,000 units

• 30 units

• 3,000 units

Lim sells his product costing RM10 with a mark up of 50%. What is the sales price?

• RM15

• RM10

• RM5

• RM20

Lim sells his product costing RM9 with a gross profit margin of 10%. What is the sales price?

• RM10

• RM9

• RM11

• RM12

A company knows that its breakeven point is 2,000 units, and that its contribution per unit is RM2.50.

Calculate the number of units that must be sold to make a profit of RM25,000.

• 50,000 units

• 8,000 units

• 12,000 units

• 10,000 units