Refer to Infographic 7

question 22

Multiple Choice

Refer to Infographic 7.How much water is lost through free drainage in mm?

• A)40
• B)2.4
• C)12.7
• D)80
• E)14.0

Understand the principle of calculating the cost of unused capacity and how it affects the costing system.

Develop an understanding of how job-order costing systems compute manufacturing overhead and apply it to jobs.

Gain insights into the preparation of income statements under a job-order costing system and the impact of cost of unused capacity.

Understand the concept of basing predetermined overhead rates on activity at capacity versus estimated activity for the year.

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Definitions:

Capital Goods

Long-term assets used in the production of other goods and services, such as machinery, buildings, and equipment, essential for creating consumer goods.

Net Capital Outflow

The net flow of funds invested overseas by a country over a certain period, calculated as the difference between the capital leaving the country and capital entering it.

Foreign Direct Investment

An investment made by a company or individual in one country in business interests in another country, in the form of establishing business operations or acquiring business assets.

Foreign Portfolio Investment

Investments in foreign countries' securities, such as stocks and bonds, without control over the management of those entities.