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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 THREE of the following statements could explain why a favourable sales volume contribution variance has arisen?

Options:

A.

The actual selling price was higher than standard

B.

The actual selling price was lower than standard

C.

The original budgeted sales volume was set unrealistically high

D.

The original budgeted sales volume was set unrealistically low

E.

Higher quality output attracted more customers than expected

F.

The actual contribution per unit was higher than standard

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Question 2

Which THREE of the following are parts of the master budget? (Choose three.)

Options:

A.

Finished goods inventory budget.

B.

Budgeted statement of profit or loss.

C.

Cash flow budget.

D.

Sales budget.

E.

Administration overhead budget.

F.

Budgeted statement of financial position.

Question 3

The following data are available for a company that produces and sells a single product.

The company’s opening finished goods inventory was 2,500 units.

The fixed overhead absorption rate is $8.00 per unit.

The profit calculated using marginal costing is $16,000.

The profit calculated using absorption costing and valuing its inventory at standard cost is $22,400.

The company’s closing finished goods inventory is:

Options:

A.

3,300 units

B.

1,700 units

C.

3,900 units

D.

8,900 units

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