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P1 Exam Dumps : Management Accounting

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Management Accounting Questions and Answers

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Question 1

QR uses an activity based budgeting (ABB) system to budget product costs. It manufactures two products, product Q and product R. The budget details for these two products for the forthcoming period are as follows:

The total budgeted cost of setting up the machines is $74,400.

Select TWO potential benefits of using an activity based budgeting system.

Options:

A.

Activity based budgeting allows the ranking of activities and the determination of how limited resources should be allocated across competing activities.

B.

Activity based budgeting provides a clear framework for understanding the link between turnover and the level of activity.

C.

Activity based budgeting is useful for the review of quality systems utilization.

D.

Activity based budgeting allows the identification of value added and non-value added activity and ensures that any budget cuts are made to non-value added activities.

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Question 2

Which of the following managers is most likely to be responsible for an favourable labour efficiency variance?

Options:

A.

Production Manager

B.

Purchasing Manager

C.

Human Resources Manager

D.

Marketing Manager

Question 3

Two products being produced by a company require the same material which is limited to 2,600 kgs.

What is the optimal production plan?

Options:

A.

500 units of S & 100 units of T

B.

50 units of S & 400 units of T

C.

400 units of S & 167 units of T

D.

500 units of S & 400 units of T

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