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BA2 Exam Dumps : Fundamentals of management accounting

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Fundamentals of management accounting Questions and Answers

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

The materials price variance will be adverse when:

Options:

A.

The actual cost of the materials is more than the standard material cost for the output produced

B.

The actual cost of the materials purchased is more than the standard cost of the materials purchased

C.

The materials usage variance is favourable

D.

The price of materials has fallen

Question 3

Which of the following would have an impact on the cash budget?

(a) Change in payables terms

(b) Change in the rate of depreciation

(c) Change in the percentage discount allowed

(d) Change of inventory holding policy

Options:

A.

None of the above

B.

(a), (b) and (c)

C.

(a), (c) and (d)

D.

All of the above