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PD manufactures a product in a process operation. Normal loss is 5% of input and occurs at the end of the process. The following data is available for the month of August:

Scrapped units have no value.
There was no opening or closing work in progress for August.

What was full cost of output to finished goods in August?

Options:

$52,687

$51,764

$53,580

$55,460

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Question 2

In investment appraisal, the net present value (NPV) is

Options:

The discount rate at which the project's cash inflows are equal to the cash outflows.

The present value of the project's cash inflow.

The difference between the present value of the project's cash inflows and the present value of the cash outflows.

The difference between the present value of the project's profit and the present value of the initial investment.

Question 3

Which of the following is the LEAST appropriate basis on which to apportion the insurance costs of plant and machinery:

Options:

Machine hours

Net book value

Original cost

Replacement cost

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