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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

Refer to the Exhibit.

A company operates an absorption costing system. The management accounts show that fixed production overheads were over-absorbed in the period.

Which FOUR combinations could possibly have resulted in this situation?

Options:

A.

Combination A

B.

Combination B

C.

Combination C

D.

Combination D

E.

Combination E

F.

Combination F

G.

Combination G

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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

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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