QUESTION: 1 Exam Topic: 1, Exam Pool A

CORRECT TEXT

Refer to the exhibit.

Each unit of product `Smitten' uses 5 kgs of material 'Z'.

The budgeted details for March are as follows:

It is anticipated that sales of product `Smitten' in March will be 20000 units.

The amount of material 'Z' that needs to be purchased in March is:

110491 kgs

Answer(s): A

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QUESTION: 2 Exam Topic: 1, Exam Pool A

A company's cash budgetary plans show that there will be surplus cash for three months of the forthcoming year.

Which THREE of the following would be appropriate management actions in this situation?

Offer a longer credit period to new customers to boost sales
Purchase new non-current assets to increase efficiency
Reduce the finished goods inventory to save storage costs
Pay suppliers early to obtain prompt payment discounts
Repay a long-term loan to reduce interest costs
Invest in a short-term deposit account

Answer(s): A,D,F

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QUESTION: 3 Exam Topic: 1, Exam Pool A

Refer to the Exhibit.

PD manufactures a product in a process operation. Normal loss is 5% of input and occurs at the end of the process. The following data is available for the month of August:

Scrapped units have no value.

There was no opening or closing work in progress for August.

What is the value of the abnormal gain in August?