The Following Costs Were Incurred in April:
Conversion Costs During

question 22

Multiple Choice

The following costs were incurred in April:
Conversion costs during the month totalled:
$\begin{array}{lrr} \text { Direct materials. } &£ 18,000\\ \text { Direct labour. } &£ 21,000\\ \text { Manufacturing overhead. } &£ 33,000\\ \text { Selling expenses. } &£ 14,000\\ \text { Administrative expenses. } & £ 19,000\\\end{array}$

• A)£39,000.
• B)£54,000.
• C)£105,000.
• D)£51,000.

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Definitions:

Benevolent Social Planner

A theoretical construct representing an entity or policymaker that aims to achieve the most efficient and equitable outcomes for society as a whole, often seen in economic models.

Socially Efficient

A condition where resources are allocated in a way that maximizes the overall benefit to society, taking into account all externalities.

Marginal Revenue

The additional income obtained from selling one more unit of a good or service, critical in determining the optimal level of production for a firm.

Profits Maximize

The process or strategy by which a firm seeks to achieve the highest possible return or benefit from its operations and resources.