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The International Federation of Accountants (IFAC) stated that it was important that “accountants in business” should understand what the drivers of stakeholder value are. Which of the following statements is valid?

Options:

Anyone with an interest in an organisation can be considered to be one of its stakeholders.

Stakeholders must be external to the organisation.

Only an organisation’s shareholders and employees can be considered to be its stakeholders.

Only an organisation’s shareholders can be considered to be its stakeholders.

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Question 2

Refer to the exhibit.

Data for October's budget for product Quest for the month of October are given below:

Each unit of Quest requires 6kg of raw materials. Strict quality control procedures are applied to the manufacturing process and normal rejection levels are 5% of finished units.

The raw materials purchases budget for the month of October is:

Options:

2,134,737 kg

2,136,000 kg

2,129,400 kg

2,130,600 kg

Question 3

Over absorption of overhead will always arise when:

Options:

actual overhead incurred is lower than budgeted overhead

actual overhead incurred is lower than absorbed overhead

absorbed overhead is lower than actual overhead incurred

absorbed overhead is higher than budgeted overhead

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