Bytes Limited operates an IT consultancy business and uses a coding system for its elements of cost (materials, labour or overheads) and then further classifies each element by nature (direct or indirect cost):
Element of cost Code Nature of cost Code
Materials A Direct 100
Indirect 200
Labour B Direct 100
Indirect 200
Overheads C Direct 100
Indirect 200
What would the codes be for the following costs?
Cost Code
Salary of trainee IT consultant
Planning costs to renew lease of the office
Wages of the office manager
Cleaning materials used by cleaner
How would a clothes retailer classify the following costs?
Cost Materials Labour Expenses
Designer skirts
Heating costs
Depreciation of fixtures and fittings
Cashier staff salaries
The following data relate to two output levels of a department:
Machine hours 17,000 18,500
Overheads $246,500 $251,750
What is the amount of fixed overheads?
$ O
P Harrington is a golf ball manufacturer. Classify the following costs by nature {direct or indirect) in the table below.
Cost Direct Indirect
Machine operators wages
Supervisors wages
Resin for golf balls
Salesmen's salaries
Which of the following relates to management accounts and which to financial accounts?
Management accounts Financial accounts
Prepared yearly
For internal use
Contains future information
In which ways do management accountants helps manager of a business?
YES NO
Control
Plan
Co-ordinate
Make decisions
Motivate
Which of the following are primary sources of data and which are secondary sources of data?
Primary Secondary
Data collected outside a polling station regarding voters choices
An internet search for the cheapest fuel available in the area
Government statistics on the levels of unemployment
Data collected by observation on the number of cars flowing through a junction
during peak travel hours
A pie chart is being produced to represent the sales from different regional offices of a
business: $000
North 125
North West 180
East 241
South 691
South East 147
Total 1,384
What would be the angle of the East divisions section on the pie chart (to the nearest whole degree)? O
Referring to the graph which statements are true and which are false?
True False
Area 3 shows the best performance in Q3
Area 2 sales are consistent quarter on quarter
Q4 has the largest volume of sales across all areas
Area 1 shows the best performance in Q2
When gathering information on a potential client you can use both internal sources of information and external sources of information.Which TWO of the following would be classified as internally generated information?