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P1 Exam Dumps : Management Accounting

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Management Accounting Questions and Answers

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Question 1

A company sells two products, X and Y, which are always sold in the same ratio.

No inventories are held.

The following budgeted data relate to month 10:

What is the budgeted margin of safety in month 10?

Options:

A.

600 units

B.

5,400 units

C.

1,000 units

D.

5,000 units

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Question 2

Your company want to know how many units they'd have to sell this season to break even. However, you have some reservations over whether or not breakeven analysis is suitable for the company.

Which of these assumptions over product range limit the accuracy of break even analysis? Select ALL that apply.

Options:

A.

The company only sells one product

B.

The company has a consistent selling ratio across all products

C.

The company sells multiple products

D.

Variable costs remain consistent at any level of production

E.

Fixed costs remain the same regardless of activity

F.

The company has a variable selling ratio across all products

G.

Prices and demand of products will remain steady

Question 3

Which of the following managers is most likely to be responsible for an favourable labour efficiency variance?

Options:

A.

Production Manager

B.

Purchasing Manager

C.

Human Resources Manager

D.

Marketing Manager

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