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P1 Exam Dumps : Management Accounting

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Management Accounting Questions and Answers

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Question 1

EF manufactures and sells three products, X, Y and Z. The following production overhead costs are budgeted for next year:

Required:

Calculate the total budgeted production overhead cost for each product using activity based budgeting.

Options:

A.

The total budgeted production overhead cost was $ 1 285 000

B.

The total budgeted production overhead cost was $ 1 305 000

C.

The total budgeted production overhead cost was $ 2 195 000

D.

The total budgeted production overhead cost was $ 1 188 000

E.

The total budgeted production overhead cost was $ 1 258 000

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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

A company has identified the trend in its sales figures through the regression equation Y = 65.9 + 3.86X, where Y is the sales revenue in thousands of dollars and X is the month number. The average seasonal variation for October is 87%

Calculate the forecast sales revenue for October of Year 6.

Give your answer to the nearest $000.

Options:

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