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BA2 Exam Dumps : Fundamentals of management accounting

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Fundamentals of management accounting Questions and Answers

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Question 1

Which of the following is NOT a valid purpose of budgeting?

Options:

A.

To communicate targets to managers.

B.

To comply with financial reporting requirements.

C.

To coordinate the different activities of an organisation.

D.

To authorise managers to incur expenditure.

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Question 2

Which one of the global principles of management accounting should be tailored to the knowledge of the decision maker?

Options:

A.

Information

B.

Communication

C.

Trust

D.

Impact

Question 3

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:

A.

An over-absorption of overheads for the period

B.

An under-absorption of overheads for the period

C.

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

D.

Impossible to tell from the information available

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