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P1 Exam Dumps : Management Accounting

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Management Accounting Questions and Answers

Question 1

A tennis club is considering running an open day to encourage new members and thus increase membership fees. The cost of the open day will be $1,000. Attendance is dependent on the weather. There is a 60% chance of good weather and a 40% chance of poor weather on the open day.

The expected new membership fees are:

What is the expected value of running the open day?

Give your answer as a whole number.

Options:

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Question 2

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.

Question 3

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