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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

A company operates an absorption costing system. Overheads are absorbed using a pre-determined absorption rate using labour hours.

Actual labour hours were 10% below budget for the period and overheads incurred were 10% above budget for the period. This would result in:

Options:

An over-absorption of overheads for the period

An under-absorption of overheads for the period

Neither an over- or under-absorption of overheads for the period

Impossible to tell from the information available

Question 3

Refer to the exhibit.

The following data are available for last period for the x-ray department of a local hospital:

The x-ray department cost per patient for last period was (to the nearest $0.01) is:

Options:

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Fundamentals of management accounting Questions and Answers

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