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P1 Exam Dumps : Management Accounting

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Management Accounting Questions and Answers

Question 1

A company manufactures a single product. The cost card for a unit of this product is as follows:

During month 6, finished goods inventory increased by 350 units.

By how much would the profit differ in month 6 if finished goods inventory was valued at standard marginal cost rather than standard absorption cost?

Options:

A.

$1,050 lower

B.

$1,050 higher

C.

$2,450 lower

D.

$2,450 higher

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Question 2

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

Question 3

A company manufactures a single product. The following budgeted data applies to month 6:

What was the budgeted fixed production overhead for month 6?

Give your answer to the nearest whole $ (in '000s).

Options: