BA2 Exam Dumps : Fundamentals of management accounting

Which of the following statements is correct?

(i) Public sector bodies use annual budgets and thus have no need for longer term strategic planning information

(ii) Public sector budgets are fixed budgets therefore the use of flexible budgets for cost control purposes is not appropriate

(iii) Public sector performance indicators include both financial and non-financial information

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

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: