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1) Which one of the following statements is true about variable selling and distribution costs for the variable costing system? (2) a) They are included in the valuation of inventory to comply with the Johannesburg Stock Exchange listing requirements. b) They are included in the valuation of inventory to make the marketing department efficient. c) They are not included in the valuation of inventory: these costs start once the manufacturing of the products is completed. d) They are not included in the valuation of inventory unless the related product line is discontinued 2) Which one of the following is not a reason for holding inventory in a storeroom? (2) a) Speculative motive b) Transaction motive. c) Technical motive d) Precautionary motive. 3) The following statement regarding labour is incorrect: (2) a) An overtime premium is only the additional amount paid over and above the normal rate/time. b) The net wage payable to an employee amounts to the taxable income of the employee plus all the sundry deductions associated with the employee. c) Cost to company will include the employer's contribution to the employee's pension fund but will exclude the employee's own contribution to his/her pension fund. d) The salary or wage of the factory supervisor is an example of indirect labour costs and will be included in manufacturing overheads 4) You are currently employed as a management accountant in a construction company, but you are contemplating quitting at the end of December 2020 and starting your own business. Your December 2020 salary would be: (2) a) An opportunity cost b) A sunk cost. c) An irrelevant cost. d) An unavoidable cost