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P1 Exam Dumps : Management Accounting

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Management Accounting Questions and Answers

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Question 1

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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Question 2

A master budget comprises which of the following?

Options:

A.

The budgeted income statement and the budgeted cash flow statement only.

B.

The budgeted income statement and the budgeted statement of financial position only.

C.

The budgeted income statement and budgeted capital expenditure only.

D.

The budgeted income statement, the budgeted statement of financial position and the budgeted cash flow statement only.

Question 3

MDS is facing a temporary shortage of Material H which is used to produce all three of its products.

In order to maximise its profitability, which product should be manufactured first?

Options:

A.

The product using the least amount of Material H per unit.

B.

The product with the highest contribution per kg of Material H.

C.

The product with the highest contribution per unit.

D.

The product with the highest profit per unit.

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