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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 flexible budget is a budget that is:

Options:

A.

set prior to the control period and not subsequently changed in response to changes in activity period has expired

B.

continuously updated by adding a further accounting period when the earliest accounting period has expired

C.

changed in response to changes in the level of activity

D.

changed in response to changes in costs

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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

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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