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An amount specifically set aside to cover anticipated losses from bad debts is called a:
A Provision is an amount set aside out of profits to cover a known or likely future expense or loss — such as expected bad debts. It is created when the loss is probable but the exact amount is uncertain. A reserve is set aside from profits for general purposes (not a specific liability). An appropriation is a distribution of profits (e.g., dividends). A commission is a fee or charge, not a set-aside.
Using $n_1 u_1 = n_2 u_2$:
$128 \times [\text{kg} \cdot \text{m}^{-3}] = n_2 \times [(50 \text{ g}) \cdot (25 \text{ cm})^{-3}]$
$n_2 = 128 \times \left( \frac{1000 \text{ g}}{50 \text{ g}} \right) \times \left( \frac{25 \text{ cm}}{100 \text{ cm}} \right)^3$
$n_2 = 128 \times 20 \times \left( \frac{1}{4} \right)^3 = \frac{128 \times 20}{64} = 2 \times 20 = 40$.
P Limited produces chairs at $70 each. It receives a special order for 1,000 chairs with padded seats. This requires $6,000 in extra materials, 500 extra labour hours at $15/hour, and $2,000 extra overheads. What is the total cost of this batch?
1. Base cost = 1,000 $\times$ $70 = $70,000.
2. Extra materials = $6,000.
3. Extra labour = 500 $\times$ $15 = $7,500.
4. Extra overheads = $2,000.
Total = $70,000 + $6,000 + $7,500 + $2,000 = $85,500.
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