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Section A-Multiple Choice Questions - Answer all FIVE 55 murks - 2.5 marks) 1. Cost of purchase does not include: (a) The purchase price. (b) Import duties ) The selling price. (d) Transportation costs. 2. Departure from lower-of-cost-or net realizable value (L rule may be justified in situations when: (a) cost is difficult to determine. (b) items are readily marketable at quoted market prices. (c) units of product are interchangeable. (d) All above. 3. Premium on 6-month insurance policy during constructio should be classified as the cost of: (a) Building (b) Land. (c) Insurance premium (Expenses). (d) Land Improvement. 4. Computation of the depletion base involves: (a) Development costs. (b) Post-exploratory costs. (c) Acquisition cost. (d) Revaluation cost. 5. In case of Contributory Pension plans: (a) employer bears the entire cost. (b) employees voluntarily make payments to increase the benefits. (c) offer tax benefits. (d) All above Section B-Fill in the blanks - Answer all FIVE SQ5 marks = 25 marks) 6. Development costs incurred for the purchasing of equip be included as part of the cost of the natural resource. (a) True (b) False 7. The costs associated with internally developed goodwill Section A - Multiple Choice Questions - Answer all FIVE(5 x 0.5 marks = 2.5 marks) 1. Cost of purchase does not include: (a) The purchase price. (b) Import duties. (c) The selling price. (d) Transportation costs. 2. Departure from lower-of-cost-or net realizable value (LO rule may be justified in situations when: (a) cost is difficult to determine. (b) items are readily marketable at quoted market prices. (c) units of product are interchangeable. (d) All above. 3. Premium on 6-month insurance policy during construction should be classified as the cost of: (a) Building (6) Land (c) Insurance premium (Expenses). (d) Land Improvement. 4. Computation of the depletion base involves: (a) Development costs. (b) Post-exploratory costs. (c) Acquisition cost. (d) Revaluation cost. 5. In case of Contributory Pension plans: (a) employer bears the entire cost. (b) employees voluntarily make payments to increase theim benefits. (c) offer tax benefits. (d) All above Section B - Fill in the blanks - Answer all FIVE (5 x 0.5 marks = 2.5 marks)

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