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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 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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Question 2

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

Question 3

A company is launching a new product.

The company accountant has constructed a payoff table to show the estimated profit at different levels of production and demand.

How many units should the company produce if the minimax regret criterion is applied?

Options:

A.

100,000

B.

150,000

C.

180,000

D.

200,000

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