Question 1
Mr. Jackson Carpenter works a 40-hour shift from Monday to
Friday at an hourly rate of N$70 and overtime is paid at a timeand-half. During the week he worked 8 hours overtime. What
is the basic overtime pay?
Feedback
8 x N$70 x 1 = N$560
The correct answer is: 560
Question 2
Which of the following is NOT a benefit of a Just-In-Time
inventory system
The correct answer is: Money paid as overtime
Question 5
Which of the statements below regarding inventory is false?
a.
Reduction in carrying and handling costs
c.
The advantage of FIFO is that it is easy to understand
b.
Inventory valuation becomes easy
d.
There are no costs to the company for running out of stock
Feedback
The correct answer is: There are no costs to the company for
running out of stock
Question 6
Overtime premium is normally classified under which element
of product cost?
c.
Reduction in risk of obsolescence of inventories
d.
Less cash is tied-up in inventory
Feedback
The correct answer is: Inventory valuation becomes easy
Question 3
Question text
Mr. Jackson Carpenter works a 40-hour shift from Monday to
Friday at an hourly rate of N$70 and overtime is paid at a timeand-half. During the week he worked 8 hours overtime. What
is the overtime premium pay?
Answer:
Feedback
8 x N$70 x 0.5 = N$280
The correct answer is: 280
Question 4
Which of the below is not an employee fringe benefit
a.
Housing allowance
b.
Employer sponsored gym subscriptions
c.
Money paid as overtime
d.
Authorization to use company car for personal use
Feedback
a.
The average cost of inventory is obtained by dividing total cost
over the quantity at hand
b.
The LIFO method for valuing inventory is not longer relevant
a.
Direct labour
b.
Overheads
c.
Prime cost
d.
Indirect labour
Feedback
The correct answer is: Overheads
Question 7
If purchase order lead time is 35 minutes and number of units
sold per time is 400 units, then reorder point will be?
Answer:
Feedback
35 x 400 = 14 000
The correct answer is: 14000
Question 8
Question text
Jane earned a basic salary of N$5 000 and overtime of N$1 200
in August. In addition, she receives a transport allowance of
N$300 per month. Her pension fund contribution is 7.5% of
basic salary, medical aid contribution is N$250 and she pays tax
at 20% of taxable income.
What was her taxable income in August?
c.
EOQ
Answer:
Feedback
N$
N$
5 000
1 200
300
6 500
(375)
Basic salary
Overtime
Transport allowance
TOTAL GROSS PAY
Less Pension Contribution (7.5% x 5
000)
TAXABLE INCOME
6 125
The correct answer is: 6125
Question 9
The following transactions of Manufacturers CC occurred
during May 2021 in respect of a component used in the
production of television sets:
May
01
Inventory on hand
50 units at N$22 per unit
06
Issued to production
30 Units
16
Purchased from supplier
200 units at N$26 per unit
18
Issued to production
80 units
30
Issued to production
70 units
What is the value of inventory on 30 May 2021 using Weighted
Average Cost method
Answer:
Feedback
PURCHASES SALES
May qty price May qty price Total
6
16
30 22
200 26
18
660
BALANCE
May qty price Total
1
50 22
1 100
6
20 22
16
16
16
20 22
440
200 26
5 200
220 25.64 5 640
80 25.64 2
18
051.20
30
70 25.64 1
30
794.80
The correct answer is: 1282
440
120 25.64 3
076.80
50 25.64 1 282
d.
FIFO
Feedback
The correct answer is: EOQ
Question 11
Question text
Shoe Repair Trading uses a piecework and time-based system
to pay its employees. Employees are paid N$20 for replacing a
shoe sole. The hourly rate is N$5 for a daily 7 hours shift. Mr
Shoemaker managed to replace the sole of 25 shoes on
Tuesday last week in 7 hours.
Using the piecework system what was Mr. Shoemaker’s wage
for that Tuesday?
Answer:
Feedback
25 X N$20 = N$500
The correct answer is: 500
Question 12
The following transactions of Manufacturers CC occurred
during May 2021 in respect of a component used in the
production of television sets:
May
01
Inventory on hand
50 units at N$22 per unit
06
Issued to production
30 Units
16
Purchased from supplier
200 units at N$26 per unit
18
Issued to production
80 units
30
Issued to production
70 units
What is the unit cost (to the nearest whole number) of
inventory on 16 May 2021 using Weighted Average Cost
method
Answer:
Feedback
PURCHASES
SALES
BALANCE
May qty price May qty price Total May qty price Total
1
50 22
1 100
6
Question 10
Which of the below is NOT a method for valuing inventory?
16
30 22
200 26
a.
LIFO
b.
Weighted Average Cost
The correct answer is: 26
Question 13
660
6
20 22
440
16
16
16
20 22
440
200 26
5 200
220 25.64 5 640
= 26
Workers of Malibu SeaWorks have not worked for the past two
days due to the breakdown of the fish processing plant. The
two days is normally referred to as:
a.
Holiday time
b.
Idle time
c.
Vacation leave
d.
Labour recovery time
Feedback
The correct answer is: Idle time
Question 14
Lead time is defined as the;
a.
The time it takes for the supplier to confirm than an order has
been placed and goods will be delivered
b.
The time that elapses from when an order is placed until when
the goods are received
c.
The time it will take for the store keeper to prepare a purchase
requisition and submit it to the buying department to place an
order
d.
The time it takes for the company to re-stock
Feedback
The correct answer is: The time that elapses from when an
order is placed until when the goods are received
Question 15
Question text
Woodwork Limited manufactures luxury furniture for resale to
big retail shops. It does not keep inventory of materials used
to assemble the furniture and only orders the required
materials from its suppliers when orders are received from
customers. Nevertheless, it keeps very minimal inventory (if
any). What type of system is Woodwork using to manage its
inventory costs?
a.
Just-In-Time System
b.
Material Requirement Planning System
c.
Inventory Planning system
d.
Kaizen System
Feedback
The correct answer is: Just-In-Time System
Question 16
The Economic Order Quantity (EOQ) is the order size at which:
a.
Total inventory costs is the lowest
b.
Holding cost is the lowest
c.
Ordering cost is the lowest
d.
Total inventory costs are affordable to the company
Feedback
The correct answer is: Total inventory costs is the lowest
Question 17
Question text
Jane earned a basic salary of N$5 000 and overtime of N$1 200
in August. In addition, she receives a transport allowance of
N$300 per month. Her pension fund contribution is 7.5% of
basic salary, medical aid contribution is N$250 and she pays tax
at 20% of taxable income.
What was her total deduction in August?
Answer:
Feedback
N$
Basic salary
Overtime
Transport allowance
TOTAL GROSS PAY
Less Pension Contribution (7.5% x 5
000)
TAXABLE INCOME
LESS DEDUCTIONS
PAYE (20% x 6 125)
1 225
Medical aid
250
The correct answer is: 1475
Question 18
N$
5 000
1 200
300
6 500
(375)
6 125
(1 475)
Question text
Which of the below labour costs will not be classified as direct
labour in a car assembly plant or factory?
a.
Salary of a Mechanic who fits engines
b.
Salary of an electrician who fits the car lights
c.
Salary of the Factory Supervisor
d.
Salary of a spray painter who paints the cars
Feedback
The correct answer is: Salary of the Factory Supervisor
Question 19
Question text
The formula for Total Inventory Cost is:
a.
Carrying costs plus holding costs
b.
Stock out costs plus carrying costs
c.
Purchases costs plus ordering costs
d.
Ordering costs plus carrying costs
Feedback
The correct answer is: Ordering costs plus carrying costs
Question 20
Question text
ABC Limited imports tyres for resale and uses the EOQ model
to determine the order size. Previously, the Procurement
Manager used to order 2 000 tyres per month. What will be
the effect on ordering and inventory costs if the EOQ size is
increased to 3 000 tyres per month?
a.
There is no effect on the holding and ordering costs of the
company
b.
Holding costs and ordering cost will increase
c.
Holding costs will increase and ordering costs will decrease
d.
Holding and ordering costs will decrease
Feedback
The correct answer is: Holding costs will increase and
ordering costs will decrease
Question 21
Question text
Which of the below statements is true regarding a time-based
system?
a.
Employees are paid for the number of hours worked
b.
There is an incentive to increase output than in the piecework
system
c.
In a time-based system employees are paid based on
production output
d.
There is no need for close constant supervision when using a
time based system
Feedback
The correct answer is: Employees are paid for the number of
hours worked
Question 22
Which of the below is NOT an assumption of the EOQ model?
a.
Lead time is constant and certain
b.
Ordering and holding costs fluctuates
c.
Demand is certain
d.
Unit purchase price is constant
Feedback
The correct answer is: Ordering and holding costs fluctuates
Question 23
Question text
Which of the following statement regarding employee
remuneration is false?
a.
Employees’ pension fund contributions is normally calculated
on basic wages
b.
Income tax (PAYE) on employees’ salary is calculated on gross
pay
c.
On public holidays employees’ will still be paid their normal
salary
d.
Tax deducted from employees’ salaries is paid over to Receiver
of Revenue by the employer
Feedback
The correct answer is: Income tax (PAYE) on employees’
salary is calculated on gross pay
Question 24
Question text
Mr. Jackson Carpenter works a 40-hour shift from Monday to
Friday at an hourly rate of N$70 and overtime is paid at a timeand-half. During the week he worked 8 hours overtime. What
is the total remuneration of Mr Jackson?
Answer:
Feedback
Question 26
Question text
Jane earned a basic salary of N$5 000 and overtime of N$1 200
in August. In addition, she receives a transport allowance of
N$300 per month. Her pension fund contribution is 7.5% of
basic salary, medical aid contribution is N$250 and she pays tax
at 20% of taxable income.
What was her total gross salary in August?
Answer:
Feedback
N$
Basic salary
Overtime
Transport allowance
TOTAL GROSS PAY
The correct answer is: 6500
Question 27
Question text
Jane earned a basic salary of N$5 000 and overtime of N$1 200
in August. In addition, she receives a transport allowance of
N$300 per month. Her pension fund contribution is 7.5% of
basic salary, medical aid contribution is N$250 and she pays tax
at 20% of taxable income.
What was her net income in August?
Answer:
Feedback
N$
N$
2 800
840
3 640
Basic pay (40 x N$70)
Overtime pay (8 x N$70 x 1.5)
TOTAL REMUNERATION
The correct answer is: 3640
Question 25
Question text
Which of the below is not a bonus scheme method?
a.
Halsey premium method
b.
Halsey-Weir premium method
c.
Rowan premium method
d.
Piecework method
Feedback
The correct answer is: Piecework method
N$
5 000
1 200
300
6 500
N$
5 000
1 200
300
6 500
(375)
Basic salary
Overtime
Transport allowance
TOTAL GROSS PAY
Less Pension Contribution (7.5% x 5
000)
TAXABLE INCOME
6 125
LESS DEDUCTIONS
(1 475)
PAYE (20% x 6 125)
1 225
Medical aid
250
NET INCOME
4 650
The correct answer is: 4650
Question 28
Question text
Toyota Limited owns a plant where it assemble cars. The
company is redesigning its systems and would like to acquire a
system that can generate a master schedule indicating the
required parts needed to assemble cars, the date they should
be ordered and the quantity of the parts to be ordered. What
type of system is Toyota looking to acquire?
a.
Inventory Planning system
b.
Kaizen system
c.
Just-In-Time System
d.
Material Requirement Planning system
Feedback
The correct answer is: Material Requirement Planning system
Question 29
Question text
The following transactions of Manufacturers CC occurred
during May 2021 in respect of a component used in the
production of television sets:
May
01
Inventory on hand
50 units at N$22 per unit
06
Issued to production
30 Units
16
Purchased from supplier
200 units at N$26 per unit
18
Issued to production
80 units
30
Issued to production
70 units
What is the value of inventory on 16 May 2021 using Weighted
Average Cost method
Answer:
Feedback
PURCHASES
SALES
BALANCE
May qty price May qty price Total May qty price Total
1
50 22
1 100
6
16
200 26
30 22
660
6
20
22
440
16
16
16
20 22
440
200 26
5 200
220 25.64 5 640
The correct answer is: 5640
Question 30
Question text
When using the graphical method to determine the EOQ at
which point will the EOQ size be?
a.
The point at which the total cost line as its highest
b.
The point at which the ordering costs curve is the lowest
c.
The point at which the holdings costs curve is the highest
d.
The point at which the ordering and holding costs curves
intersect
Feedback
The correct answer is: The point at which the ordering and
holding costs curves intersect
Question 31
Question text
Which of the below is not a method for determining the
economic order quantity?
a.
Scatter graph method
b.
Formula method
c.
Tabular method
d.
Graphical method
Feedback
The correct answer is: Scatter graph method
Question 32
Question text
Doctor Surgeon is employed on an hourly rate of N$ 300 per
hour at a private practice. His normal working hours is 40 hours
per week from Monday to Friday. In the past week he worked
5 hours overtime paid at a time-and-half and double rate for
Sundays and public holidays. What was his basic overtime
pay?
Answer:
Feedback
5 x N$300 x 1 = N$1 500
The correct answer is: 1500
Question 33
Question text
Which of the below is generally not a source document in the
inventory ordering process?
a.
Goods received note
b.
Supplier invoice
c.
Bank statement
d.
Purchase order
Feedback
The correct answer is: Bank statement