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P1 Exam Dumps : Management Accounting

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Management Accounting Questions and Answers

Question 1

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

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Question 2

A snowboard manufacturer is considering investing in technology that will give a good indication of how heavy snowfall will be in the future. The predictions tend to be reasonably accurate.

The current budgeted profit for the year is £2,560,000 but if they invest in this technology and it works, the expected profit will be £2,640,000. The manufacturer is willing to invest a maximum of £40,000 into the venture.

What is the expected profit if the investment is NOT made?

Options:

A.

£2,560,000

B.

£2,640,000

C.

£2,520,000

D.

£2,600,000

Question 3

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