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P1 Exam Dumps : Management Accounting

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Management Accounting Questions and Answers

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Question 1

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

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Question 2

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

Question 3

A company uses a standard costing system.

The company’s sales budget for the latest period includes 1,500 units of a product with a selling price of $400 per unit.

The product has a budgeted contribution to sales ratio of 30%.

Actual sales for the period were 1,630 units at a selling price of $390 per unit.

The actual contribution to sales ratio was 28%.

The sales volume contribution variance for the product for the latest period is:

Options:

A.

$15, 600 F

B.

$17, 800 F

C.

$55, 600 F

D.

$32, 900 F

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