Subsection 2.1. Costs and cost behaviour for Accounting, A Level - revisedeck

2.1. Costs and cost behaviour

A subsection of Accounting, 9706, through 2. Cost and management accounting (AS Level)

Listing 10 of 370 questions

A business has calculated inventory turnover ratio as 8 times. Opening inventory was $25 000 and closing inventory was $28 000. What is the value of purchases?

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MCQ

2016

Paper 1, Variant 3

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The following inventory transactions are available for a business. opening inventory on 1 January 16 items at $525 each receipts on 3 January 24 items at $675 each issues on 5 January 28 items The business uses the AVCO method to value inventory. What was the value of closing inventory on 7 January?

9706_w16_qp_13

MCQ

2016

Paper 1, Variant 3

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The following information is available for the inventory of a business. July 1 opening inventory 60 units at $4.50 per unit issued 40 units purchased 120 units at $5.20 per unit issued 65 units What is the value of the inventory on 31 July based on AVCO?

9706_w17_qp_11

MCQ

2017

Paper 1, Variant 1

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A business has 500 items of inventory at a cost price of $3 each. The selling price per unit is based on a mark-up of 20%. Before sale, the items need to be repaired at a total cost of $400. What is the net realisable value of the inventory?

9706_w17_qp_12

MCQ

2017

Paper 1, Variant 2

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Which will result in a high valuation of closing inventory?

9706_w17_qp_13

MCQ

2017

Paper 1, Variant 3

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A business provides the following extract from its income statement. $ opening inventory 15 000 purchases 180 000 closing inventory (18 750) cost of sales 176 250 What is the rate of inventory turnover?

9706_w18_qp_11

MCQ

2018

Paper 1, Variant 1

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Why is inventory excluded from the calculation of the quick ratio?

9706_w18_qp_11

MCQ

2018

Paper 1, Variant 1

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A business values its inventory using the FIFO method. The following transactions took place. month units April opening inventory 700 at $190 each May purchases 500 at $220 each June sales 400 at $400 each What was the value of the closing inventory at the end of June?

9706_w18_qp_11

MCQ

2018

Paper 1, Variant 1

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A retailer uses the FIFO method for inventory valuation. The following information is available. June $ opening inventory 300 units at $12 per unit 3 600 purchased 1000 units at $12.50 per unit 12 500 sold 1200 units for $16 each 19 200 purchased 700 units at $13 per unit 9 100 What was the value of the inventory at 30 June?

9706_w18_qp_12

MCQ

2018

Paper 1, Variant 2

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The inventory records of a business show the following information for product X. units cost per unit $ 1 January opening balance 3 January receipts into inventory 8 January inventory issued – What is the value of the inventory issued on 8 January using the FIFO method?

9706_w18_qp_13

MCQ

2018

Paper 1, Variant 3

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Questions Discovered

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