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What is the effect of volenti non fit injuria in the law of tort? 

A

 It is a complete defence to an action in negligence 

B

 It reduces the amount of damages that a defendant is liable for 

C

 It reverses the burden of proof so that the defendant must prove that they were not negligent 

 In negligence, what is the limit of a defendant's liability for damages? 

A

 The full losses incurred by the claimant 

B

 The losses that the defendant could reasonably foresee 

C

 The amount of losses that the defendant can afford to pay 

Misty Co's budgetary control report for last month is as follows:

                                                              Fixed budget                          Flexed budget                  Actual results

                                                                       $                                            $                                      $

Direct costs                                                61,100                                 64,155                                67,130

Production overhead                                55,000                                   56,700                               54,950

Other overhead                                        10,000                                  10,000                                11,500

                                                                  126,100                               130,855                               133,580

What was the volume variance for last month?

A

$4,755 (A)

B

$2,725 (A)

C

$4,755 (F)

D

$2,725 (F)

Misty Co's budgetary control report for last month is as follows:Fixed budget Flexed budget $ $

Direct costs                                                 61,100                        64,155

Production overhead                                  55,000                        56,700

Other overhead                                          10,000                       10,000

                                                                  126,100                      130,855

What was the expenditure variance for last month?

A

$7,480 (F)

B

$2,725 (F)

C

$7,480 (A)

D

$2,725 (A)

What does a master budget comprise?

A

The budgeted statement of profit or loss

B

The budgeted cash flow, budgeted statement of profit or loss and budgeted statement of financial position

C

The budgeted cash flow

D

The entire set of budgets prepared

Which of the following is NOT a functional budget?

A

Production budget

B

Distribution cost budget

C

Selling cost budget

D

Cash budget

If a company has no production resource limitations, in which order would the following budgets be prepared? (i) Material usage budget (iv) Finished goods inventory budget(ii) Sales budget (v) Production budget(iii) Material purchase budget (vi) Material inventory budget

A

(v), (iv), (i), (vi), (iii), (ii)

B

(ii), (iv), (v), (i), (vi), (iii),

C

(ii), (iv), (v), (i), (iii), (vi)

D

(ii), (v), (iv), (i), (vi), (iii)

In a situation where there are no production resource limitations, which of the following items of information must be available for the production budget to be completed?(i) Sales volume from the sales budget(ii) Material purchases from the purchases budget(iii) Budgeted change in finished goods inventory(iv) Standard direct labour cost per unit

A

(i), (ii) and (iii)

B

(i), (iii) and (iv)

C

(i) and (iii)

D

All of them

When preparing a production budget, what does the quantity to be produced equal?

A

Sales quantity + opening inventory of finished goods + closing inventory of finished goods

B

Sales quantity - opening inventory of finished goods + closing inventory of finished goods

C

Sales quantity - opening inventory of finished goods - closing inventory of finished goods

D

Sales quantity + opening inventory of finished goods - closing inventory of finished goods

The quantity of material in the material purchases budget is greater than the inferred from quantity of material in the material usage budget. Which of the following statements can be this situation?

A

Wastage of material occurs in the production process

B

Finished goods inventories are budgeted to increase

C

Raw materials inventories are budgeted to increase

D

Raw materials inventories are budgeted to decrease