1) A mixed cost a) Is a cost which tends to be unaffected by b) Is a cost that has both a fixed and a 2) A fixed cost a) Aims to reduce costs by cutting inventory to a minimum. b) Is a cost which tends to be unaffected by 3) Is the value of the potential benefit that is lost or sacrificed when one course of action is chosen above the competing course of action a) Process costing b) Opportunity cost 4) Continuous updating balances for items of inventory. a) Perpetual inventory system b) Periodic inventory system 5) Job order costing a) Is a cost that has already been incurred and which cannot be changed by any b) Assigns costs to each job or each batch of goods. 6) Breakage, age and fires are causes of shrinkage. a) True b) False 7) Indirect labour is paid to employees that ‘touch’ the product. a) False b) True 8) The format of management accounting reports is not governed by law. a) False b) True 9) Financial accounting reports must be produced according to a specified format as laid down by law (GAAP) and the accounting profession. a)  True b) False 10) Financial accounting provides information concerning the future performance of the business. a) False b) True

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