pathfinder - The Institute of Chartered Accountants of Nigeria

PATHFINDER10. First in First out (FIFO) characteristics do NOT include ONE of the following:A. It is an actual cost system.B. It renders cost comparison easy.C. Oldest items are issued out first.D. Unrealized profits do not exist.E. Stock valuation is based on recently acquired materials.11. Which of the following is a cost driver?A. An item of production overheadB. Any cost incurred by the vehicle driverC. A common cost which is shared over cost centresD. Any cost relating to transportE. An activity which generates cost12. The following data relates to stock item SSR: Ordering cost is N40 per order,stockholding cost is 24% per unit per annum and annual demand is 12,000 atN100 per unit. What is the economic order quantity?A. 500 unitsB. 400 unitsC. 200 unitsD. 220 unitsE. 250 units13. What is the area which does not contravene any of the constraints in a typicallinear programming problem called?A. Optimum areaB. Acceptable regionC. Critical regionD. Feasible regionE. Rejection regionINTERMEDIATE EXAMINATION - NOVEMBER 20106