581. Merrick Differential Piece Rate Plan based on _____________piece rates is fixed?
(A) Two
B) Three
(C) Four
(D) Five
582. In cost accounting, unavoidable loss is charged to which of the following?
(A) Factory overhead control account
(B) Work in process control account
(C) Marketing overhead control account
D) Administration overhead control account
583. Which of the following statements is TRUE about historical cost?
(A) It is always relevant to decision-making
B) It is always irrelevant to decision-making
(C) It is always an opportunity cost
(D) It is always realizable value
584. In decision-making all costs already incurred in the past should always be:
A) Ignored
B) Considered
C) Partially ignored
D) Partially considered
585. Which of the following statements is TRUE about the relevant cost?
(A) It is a sunk cost
B) It is an opportunity cost
(C) It does not affect the decision-making process
(D) All costs are relevant
586. All of the following are features of a relevant cost EXCEPT?
(A) They affect the future cost
(B) They cause an increment in cost
C) Relevant cost is a sunk cost
(D) They affect the future cash flows
587. Which of the following would NOT lead to an increase in net cash flow?
(A) Larger sales volume
(B) Higher selling price
(C) Reduced material cost
D) Charging of lower depreciation
588. Which of the following would be considered to be an investment centre?
(A) Managers have control over marketing
(B) Managers have a sales team
(C) Managers have a sales team and are given a credit control function
D) Managers can purchase capital assets and are given a credit control function
589. Which of the following accounts with normal balance is shown at the credit side of a trial balance?
A: Cash account
B: Bank account
C: Equipment account
D: Accrued expenses account
590. If debit balances = credit balances, the trial balance only shows or checks the __ and it does not indicate that no errors were made during recording and posting.
A: Arithmetic accuracy
B: Errors of commission
C: Omissions of economic events
D: Understatements of balances
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