Self assessment testo

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The following test is for your personal self-assessment. You should find it easy because you have already gathered this knowledge. If the test looks not easy, find the time to improve your starting knowledge. Correct answers will be uploaded in one week. 1. The “product full manufacturing cost”: □ Includes only the costs of “direct” resources (i.e. resources whose consumption by products can be measured in a very accurate and precise way) □ Includes all manufacturing variable costs incurred in the production of each unit of that item □ Includes all operating variable and fixed costs concerning that product (depreciation, salary of production supervisors, sales, administration and general expenses etc.) □ None of the previous answers 2. In a manufacturing company, the depreciation cost of a piece of equipment used to manufacture different products (i.e. different items) is an example of: □ A variable, direct cost □ A fixed, indirect (or “manufacturing overhead”) cost □ A variable, indirect cost □ A fixed, direct cost 3. XYZ ltd manufactures only one type of product. In June 2017, the company incurred the following costs: Direct materials 31,000 € Direct labour 18,000 € Factory rent 12,000 € Equipment deprecation – factory 2,000 € Equipment depreciation – sales office 750 € Marketing expenses 2,500 € Administrative expenses 40,000 € In the same month 35. 000 units were produced . What is the full production (or manufacturing) unitary cost? □ 1.80 €/u □ Approximately 3.04 €/u □ Approximately 1.82 €/u □ None of the previous answers 4. In terms of precision, Activity Based Costing is supposed to perform better than other product costing systems (such as Job Order Costing) when: □ Indirect costs are the large majority of product costs AND the company manufactures both niche…