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NEW QUESTION 41
In which of the following costing methods, overhead costs are applied in proportion to production volume?

• A. Mark-up costing
• B. Marginal costing
• C. Absorption costing
• D. Activity-based costing

Answer: C

Explanation:
There are 3 major costing methods:
Marginal costing
* Uses marginal cost of producing addition units
* Uses variable cost to derived a unit cost (does not include fixed cost)
* Fixed cost treated as a 'period cost' and deducted, as a total amount, from total contribution to profit for the period, in the firm's profit and loss account Absorption costing
* Calculates total cost of producing product
* In addition to variable cost, a fair proportion of fixed cost is allocated to (absorbed) eachunit of output, as a fixed cost per unit Activity based costing
* Similar to absorption costing but with fixed cost allocated to products on the basis of the cost of activities used in producing them LO 2, AC 2.1

NEW QUESTION 42
Which of the following is categorised as fixed cost?

• A. Raw materials for next year production
• B. Additional pallet hires due to higher demand in year-end season
• C. Governments taxes
• D. Land rental paid in advance

Answer: D

Explanation:
Anorganisation's expense can be categorised into three groups:
Fixed Costs - costs that do not change with output.
Variable Costs - costs that vary in direct proportion to output.
Semi-variable costs - costs that are a combination of the above, with both a fixed and variable element.
Among the four options:
"Land rental paid in advance": This is fixed cost. The rental won't increase when the production increases.
"Additional pallet hires due to higher demand in year-end season": This can be identified as semi-variable cost (or step cost).
"Governments taxes": The taxes are often levied by a percentage of income or revenue. Therefore, it is variable
"Raw materials for next year production": This is obviously variable cost.

NEW QUESTION 43
Which of thefollowing is the purpose of using stakeholder support level scale?

• A. To identify stakeholder level of influence and interest and plot them on stakeholder map
• B. To estimate the gap and the progress towards desired levels of support
• C. To identify stakeholder's needs and expectations
• D. To identify key stakeholders

Answer: B

Explanation:
Explanation
In order to estimate the gap and the progress towards desired level of support, a stakeholder support scale can be used by the procurement internally. The support level scale measures stakeholder commitment. Current support level for the procurement/negotiation objectives should be gained from engagement with key stakeholders. The following is an example of stakeholder support level scale:
Graphical user interface, application Description automatically generated

LO 1, AC 1.1

NEW QUESTION 44
When is the best time in procurement process in which procurement should get involved so that the cost-saving opportunities are the greatest?

• A. Specification stage
• B. Post-contract stage
• C. Post-tender stage
• D. Market consult stage

Answer: A

Explanation:
Explanation
The earlier procurement get involved in the procurement processes, the better. If procurement are involved in design at the specification stage they can feed in prices and costs to designer so they know the likely budget implication of choices made. Sending in a procurement team to negotiate at or close to the end ofthe procurement process effectively ties their hands and limits their negotiation leverage. This is illustrated in the graph below:
Chart Description automatically generated

LO 2, AC 2.1

NEW QUESTION 45
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