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P1 Exam Dumps : Management Accounting

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Management Accounting Questions and Answers

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Question 1

Find the weighted average contribution per unit using the following information:

Options:

A.

£10

B.

£8

C.

£5.50

D.

£2.50

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Question 2

The manager of a recently opened cafe is deciding how many sandwiches to make each day.

The sandwiches are made in the morning before the cafe opens.

If demand exceeds the number of sandwiches made in the morning no extra sandwiches can be made during the day. Any unsold sandwiches are thrown away at the end of each day.

Daily demand is uncertain but is predicted to be 10, 20, 30 or 40 sandwiches.

The following regret matrix has been prepared:

If the minimax regret criterion is used to make the decision, the manager will choose to make:

Options:

Question 3

A company sells two products, X and Y, which are always sold in the same ratio.

No inventories are held.

The following budgeted data relate to month 10:

What is the budgeted margin of safety in month 10?

Options:

A.

600 units

B.

5,400 units

C.

1,000 units

D.

5,000 units

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