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P1 Exam Dumps : Management Accounting

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Management Accounting Questions and Answers

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Question 1

Two products being produced by a company require the same material which is limited to 2,600 kgs.

What is the optimal production plan?

Options:

A.

500 units of S & 100 units of T

B.

50 units of S & 400 units of T

C.

400 units of S & 167 units of T

D.

500 units of S & 400 units of T

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Question 2

You are a management accounting working for a car manufacturer. The company is publicly listed and has been around for many years.

The company produces 2 products. Car 1 and Car 2. Car 1 sells for £20,000 and Car 2 for £27,000.

Car 1 can be upgraded post production to the 1ZC model for £5,000 and Car 2 to the 2ZC model for £3,500.

Post production upgrade the 1ZC sells for £25,500 and the 2ZCfor £30,000.

The company sources all of its supplies for the same supplier and has access to a large workforce. As a result there are no bottlenecks or limiting factors to production.

Based on the information above the company should...

Options:

A.

Upgrade both models

B.

Upgrade Car 1 but not Car 2

C.

Upgrade Car 2 but not Car 1

D.

Keep both Cars as base models

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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