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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 master budget comprises which of the following?

Options:

A.

The budgeted income statement and the budgeted cash flow statement only.

B.

The budgeted income statement and the budgeted statement of financial position only.

C.

The budgeted income statement and budgeted capital expenditure only.

D.

The budgeted income statement, the budgeted statement of financial position and the budgeted cash flow statement only.

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Question 2

EF manufactures and sells three products, X, Y and Z. The following production overhead costs are budgeted for next year:

Required:

Calculate the total budgeted production overhead cost for each product using activity based budgeting.

Options:

A.

The total budgeted production overhead cost was $ 1 285 000

B.

The total budgeted production overhead cost was $ 1 305 000

C.

The total budgeted production overhead cost was $ 2 195 000

D.

The total budgeted production overhead cost was $ 1 188 000

E.

The total budgeted production overhead cost was $ 1 258 000

Question 3

A snowboard manufacturer is considering investing in technology that will give a good indication of how heavy snowfall will be in the future. The predictions tend to be reasonably accurate.

The current budgeted profit for the year is £2,560,000 but if they invest in this technology and it works, the expected profit will be £2,640,000. The manufacturer is willing to invest a maximum of £40,000 into the venture.

What is the expected profit if the investment is NOT made?

Options:

A.

£2,560,000

B.

£2,640,000

C.

£2,520,000

D.

£2,600,000

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