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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 would NOT be an appropriate performance measure for a profit centre manager?

Options:

A.

Return on capital employed

B.

Contribution per unit

C.

Sales price variance

D.

Gross margin

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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

Refer to the exhibit.

PD manufactures a product in a process operation. Normal loss is 5% of input and occurs at the end of the process. The following data is available for the month of August:

  • Scrapped units have no value.
  • There was no opening or closing work in progress for August.

What was full cost of output to finished goods in August?

Options:

A.

$52,687

B.

$51,764

C.

$53,580

D.

$55,460

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