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P1 Exam Dumps : Management Accounting

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Management Accounting Questions and Answers

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Question 1

What type of budget is prepared on an annual basis taking current year operating results and adjusting them for expected growth and inflation?

Options:

A.

Rolling budget

B.

Incremental budget

C.

Flexed budget

D.

Zero-based budget

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Question 2

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

Question 3

In a manufacturing company, breakeven occurs at which TWO of the following?

Options:

A.

When contribution is equal to zero

B.

When profit is equal to zero

C.

When revenue is equal to contribution

D.

When revenue is equal to fixed costs

E.

When fixed costs are equal to contribution

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