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P2 Exam Dumps : Advanced Management Accounting

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Advanced Management Accounting Questions and Answers

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Question 1

Which TWO of the following are examples of management information made possible by the availability of big data?

Options:

A.

Customer profitability analysis to identify key strategic customers

B.

Customer information harvested from social media to target products

C.

Production cycle time analysis to improve production efficiency

D.

Real-time inventory management information shared with producers to influence their production plans

E.

A five year history of a company's aged debtor list to assess the long-run effectiveness of credit control

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Question 2

IOP's product is manufactured using a production process that is known to have a defect rate of 10%.

IOP's quality control department has developed a test that has a 98% probability of classifying a non-defective item correctly and a 2% probability of classifying a non-defective item as defective.

The same test has a 95% probability of classifying a defective item correctly and a 5% probability of classifying a defective item as non-defective.

Calculate the proportion of IOP's output that will be classified as non-defective by the quality control department's test.

Give your answer to one decimal place.

Options:

Question 3

In order to support decision making, management accounting information categorizes costs in a variety of ways.

Responsibility accounting primarily distinguishes between costs on the basis that they are either:

Options:

A.

sunk or opportunity costs

B.

fixed or variable costs

C.

controllable or uncontrollable costs

D.

relevant or non-relevant costs

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