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P1 Exam Dumps : Management Accounting

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Management Accounting Questions and Answers

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Question 1

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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Question 2

XY can choose from four mutually exclusive projects. The projects will each last for one year and their net cash inflows will be determined by market conditions. The forecast net cash inflows for each of the possible outcomes are shown below.

If the company applies the maximin criterion the project chosen would be:

Options:

A.

Project A

B.

Project B

C.

Project C

D.

Project D

Question 3

Place the type of budget or cost against its definition.

Options:

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