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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

A company is launching a new product.

The company accountant has constructed a payoff table to show the estimated profit at different levels of production and demand.

How many units should the company produce if the minimax regret criterion is applied?

Options:

A.

100,000

B.

150,000

C.

180,000

D.

200,000

Question 3

A company develops computer software programs to meet each client's specific requirements. The management accountant is considering introducing a standard costing system.

Which THREE of the following are reasons that support the case for the company's introduction of a standard costing system?

Options:

A.

It will enable the company to make a direct comparison of costs for each program developed.

B.

It will enable the company to better focus on the quality of its service.

C.

It will provide a system of control.

D.

It will aid the budget setting process.

E.

It will simplify the work-in-progress valuation.

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