MAC1501 Assignment 2 Solutions Second Semester 2022

MAC1501
ASSIGNMENT 2
SOLUTIONS



PREPARED BY: MTHOMBENI

0767297208

, VERSION 1

Product costs consist of direct material, direct labour costs and manufacturing
overheads.

Select one:
True
False
Question 2
Correct
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Merchandise consists of goods manufactured by the company with the intention of
reselling it.

Select one:
True
False
Question 3
Correct
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The absorption costing method treats only variable costs as product costs.

Select one:
True
False
Question 4
Correct
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,For external financial reporting purposes, production overheads must be assigned to
inventory of finished goods as well as work-in-progress.

Select one:
True
False
Question 5
Correct
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The remuneration of a factory supervisor in a manufacturing plant would be classified as
cost of indirect labour.

Select one:
True
False
Question 6
Incorrect
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______ is a basis for measuring the cost of goods manufactured.

Select one:

A.
Activity-based costing

B.
Absorption costing

C.
Standard costing

D.
Process costing

, Question 7
Correct
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The following are all purchased inventory except for ….

Select one:

A.
Consumables


B.
finished goods


C.
Materials


D.
Merchandise

Question 8
Correct
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If the cost of one unit is R25, the cost of 10 units is R250 and the cost of 100 units is R2
500, we are looking at a____ cost.

Select one:

A.
fixed

B.
step

C.