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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

A bakery manager is deciding how many batches of birthday cakes to decorate each day.

Demand for the birthday cakes varies from 12 to 15 batches per day. Each batch decorated and sold earns a contribution of $40 but each batch unsold leads to loss of contribution of $15.

The payoff table below shows the total $ contribution from each of the possibilities:

Based on expected values, the number of batches of birthday cakes the bakery manager should decorate each day is:

Options:

Question 3

Your company want to know how many units they'd have to sell this season to break even. However, you have some reservations over whether or not breakeven analysis is suitable for the company.

Which of these assumptions over product range limit the accuracy of break even analysis? Select ALL that apply.

Options:

A.

The company only sells one product

B.

The company has a consistent selling ratio across all products

C.

The company sells multiple products

D.

Variable costs remain consistent at any level of production

E.

Fixed costs remain the same regardless of activity

F.

The company has a variable selling ratio across all products

G.

Prices and demand of products will remain steady

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