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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

In process costing, the term equivalent units refers to :

Options:

A.

Units of the same size and weight

B.

The conversion of partly completed units into an equivalent number of completed units

C.

The number of units produced in an equivalent time period of the previous month

D.

The valuation of products on a weight or volume of output basis

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Question 2

A company operates an absorption costing system. Overheads are absorbed using a pre-determined absorption rate using labour hours.

Actual labour hours were 10% below budget for the period and overheads incurred were 10% above budget for the period. This would result in:

Options:

A.

An over-absorption of overheads for the period

B.

An under-absorption of overheads for the period

C.

Neither an over- or under-absorption of overheads for the period

D.

Impossible to tell from the information available

Question 3

Refer to the exhibit.

SS Ltd. manufactures four products which require the same type of material. The following fixed cost and profit/(loss) per unit is available:

In a period in which materials are in short supply, which of the following options is the rank order of production?

Options:

A.

Option A

B.

Option B

C.

Option C

D.

Option D

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