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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 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

Question 3

Which THREE of the following are purposes of all budgets?

Options:

A.

Co-ordination

B.

Communication

C.

Profit maximisation

D.

Diversification

E.

Authorization

F.

Consolidation

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