Accounting Paper 2 November 2020

1. ACharging every cost to the product that caused it, after the period ends
2. BValuing inventory at the lower of cost and net realisable value
3. CSharing factory overheads between departments in proportion to floor area
4. DSetting costs in advance, then comparing actual results with them

1. AAn attainable standard applies to material and an ideal standard to labour
2. BAn attainable standard is set by the workers and an ideal one by managers
3. CAn attainable standard allows for normal waste and idle time, an ideal one allows for neither
4. DAn attainable standard is used for pricing and an ideal one for costing

1. A$280 favourable
2. B$280 adverse
3. C$320 adverse
4. D$1 720 favourable

1. A$1 200 adverse
2. B$1 200 favourable
3. C$1 224 adverse
4. D$2 000 favourable

1. A$950 favourable
2. B$950 adverse
3. C$1 000 favourable
4. D$1 950 favourable

1. A$1 000 favourable
2. B$2 850 adverse
3. C$3 000 adverse
4. D$3 000 favourable

1. A$18 000 favourable
2. B$18 000 adverse
3. C$19 200 favourable
4. D$24 000 favourable

1. ABuying cheaper material that was harder to work with, so more hours were needed
2. BEmploying more skilled workers, who were paid more but worked faster
3. CSelling fewer units than budgeted, so the factory worked below capacity
4. DPaying more for material of no better quality, so hours still overran

1. AMaterial was bought in bulk at a discount, so more of it was used
2. BCheaper, less skilled workers spoiled more material
3. COvertime was worked at premium rates, which raised the material used
4. DThe selling price was raised, so fewer units were made and sold

1. AThe firm sold more units than budgeted at a lower price than standard
2. BCosts rose, so the firm was forced to cut its selling price
3. CThe selling price was raised above standard and fewer units were sold
4. DThe budget was set before the standard selling price was agreed

1. AToxic effluent poisons rivers and dams, killing fish and plant life
2. BRecycled material becomes cheaper for every firm in the industry
3. CThe soil around the dumping site becomes more fertile over time
4. DWaste left in the open reduces the number of flies and mosquitoes nearby

1. ABurning all the waste on site at the end of each week
2. BTreating effluent before discharge and using licensed dumpsites
3. CBurying untreated waste deep enough to reach the water table
4. DStoring the waste in open pits until the rainy season washes it away

1. AThe fall in the market value of an asset since it was bought
2. BThe cash set aside each year to replace an asset at the end of its life
3. CThe part of an asset's cost charged against the revenue it helped to earn
4. DThe difference between an asset's cost and the price it is finally sold for

1. AThe market price of a new machine of the same type each year
2. BThe profit the machine is expected to earn in the coming year
3. CThe insured value of the machine at the year end
4. DIts estimated residual value at the end of its useful life

1. AIts useful life and the method chosen to spread the cost
2. BThe rate of inflation expected over the whole of the asset's life
3. CThe amount of the loan taken out to buy the asset
4. DThe profit the business made in the previous year

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1. AAdded to the cost of premises and credited to the income statement as profit
2. BShown as a current asset until the premises are sold
3. CAdded to the cost of premises and credited to a revaluation reserve
4. DDeducted from the provision for depreciation on the premises

1. APrudence
2. BMatching (accruals)
3. CConsistency
4. DMoney measurement

1. ARealisation
2. BMateriality
3. CDual aspect
4. DGoing concern

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1. ATo record the cash paid to the factory's suppliers during the year
2. BTo calculate the tax payable on the factory's profit for the year
3. CTo find the cost of production, so a cost per unit can be found
4. DTo show the value of the goods still unsold at the end of the year

1. AIt shows how much cash the business has available to pay an outside supplier
2. BIt fixes the selling price the business must charge its customers
3. CIt values the closing inventory of finished goods at selling price
4. DIt gives the cost of making the goods, to set against a supplier's price

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1. AWholly under the agreement in force at the year end
2. BSplit by time, each half under the agreement then in force
3. CWholly under the agreement in force at the start of the year
4. DSplit equally between the partners, since two agreements cannot be mixed

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1. ACapital introduced and goodwill written off
2. BInterest on capital, salary, share of profit and drawings
3. COnly the partner's drawings for the year
4. DThe partner's original capital and any later addition to it

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1. AA limited partner's liability is capped at his agreed capital and he takes no part in management
2. BA limited partner may manage the firm but cannot share in its profits
3. CA limited partner is liable for the firm's debts only after the active partners' assets are gone
4. DA limited partner receives a fixed salary instead of a share of the profit