MAC3701
ASSIGNMENT 1
DUE MARCH 2025
, MAC3701 ASSIGNMENT 1 2025
MARCH 2025 ?
1
Complete
Marked out of 1.00
Which one of the following statements is ?
Select one:
A. If an organisation had no opening and closing inventory for a certain period,
the budgeted net pro�t for that period using the absorption costing system
would be the same as the budgeted net pro�t for that period using the direct
costing system.
B. When using the absorption costing system for internal reporting purposes,
an under-recovery of FMO in an organisation’s actual statement of
comprehensive income (income statement) implies that the FMO allocated
to inventory exceed the actual FMO incurred.
C. The total sales commission will not be one of the costs subtracted from the
total sales value in the contribution calculation.
D. Both the FMO and the �xed administration costs are classi�ed as �xed costs
based on their behaviour and should, therefore, be subtracted from the
calculation of an organisation's budgeted gross pro�t.
E. None of the options
, 2
Complete
Marked out of 1.00
Khanya’s Balms (Pty) Ltd is preparing the direct raw material purchase budget for
April 2025’s Vitamin E oil. You have received the following information:
1. Vitamin E oil’s purchase price for March 2025 is R4 000 per litre. The purchase
price is budgeted to decrease by 2% from 1 April 2025.
2. The expected production for the VitE lip balm is 2 100 units for April 2025 and
2 300 units for May 2025. One VitE unit requires 1 millilitre of vitamin E oil.
3. For April 2025, the budgeted opening Vitamin E oil inventory is 180 millilitres,
and the target month-end closing inventory is the Vitamin oil requirement for
30% of May 2025 production.
4. There is no opening or closing budgeted �nished goods inventory for April
2025.
(round your �nal answer to two decimal places:
Select one:
A. 2,61 litres
B. 1,59 litres
C. 2,55 litres
D. 1,92 litres
E. None of the options
ASSIGNMENT 1
DUE MARCH 2025
, MAC3701 ASSIGNMENT 1 2025
MARCH 2025 ?
1
Complete
Marked out of 1.00
Which one of the following statements is ?
Select one:
A. If an organisation had no opening and closing inventory for a certain period,
the budgeted net pro�t for that period using the absorption costing system
would be the same as the budgeted net pro�t for that period using the direct
costing system.
B. When using the absorption costing system for internal reporting purposes,
an under-recovery of FMO in an organisation’s actual statement of
comprehensive income (income statement) implies that the FMO allocated
to inventory exceed the actual FMO incurred.
C. The total sales commission will not be one of the costs subtracted from the
total sales value in the contribution calculation.
D. Both the FMO and the �xed administration costs are classi�ed as �xed costs
based on their behaviour and should, therefore, be subtracted from the
calculation of an organisation's budgeted gross pro�t.
E. None of the options
, 2
Complete
Marked out of 1.00
Khanya’s Balms (Pty) Ltd is preparing the direct raw material purchase budget for
April 2025’s Vitamin E oil. You have received the following information:
1. Vitamin E oil’s purchase price for March 2025 is R4 000 per litre. The purchase
price is budgeted to decrease by 2% from 1 April 2025.
2. The expected production for the VitE lip balm is 2 100 units for April 2025 and
2 300 units for May 2025. One VitE unit requires 1 millilitre of vitamin E oil.
3. For April 2025, the budgeted opening Vitamin E oil inventory is 180 millilitres,
and the target month-end closing inventory is the Vitamin oil requirement for
30% of May 2025 production.
4. There is no opening or closing budgeted �nished goods inventory for April
2025.
(round your �nal answer to two decimal places:
Select one:
A. 2,61 litres
B. 1,59 litres
C. 2,55 litres
D. 1,92 litres
E. None of the options
