Free BA2 Exam Braindumps (page: 42)

A new range of clothing is very unique and will not appeal everyone. You are aware that if you were to equally distribute all the units there is a chance that they would not all sell.
You decide that the best option would be to select specific stores in which to sell the items, making them rare and desirable. This way they will become highly sought after.

However, whilst this has the potential to be very profitable it also has the lowest probability.

By making this decision you are considered to be_______.

Refer to the exhibit.



A management accountant had prepared the following initial overhead analysis, showing the overhead allocated and apportioned to the three cost centres. The number of employees in each cost centre is also shown.

The service cost centre costs are now to be reapportioned to the production cost centres on the basis of the number of employees in each production cost centre. After the reapportionment has been completed, the total overhead cost of the Assembly department will be:

CORRECT TEXT

Refer to the exhibit.



RX Ltd expects to have limited machine time for July, which will result in the following production levels:

It is anticipated that there will be 1,500 units of opening inventory and the company wishes to hold a minimum of 500 units of closing inventory at the end of July.

How many units will be available for sale during July?

A company operates a flexible budget system. A budget for direct material cost is set at £12500 for 2500 kgs of material.

It is budgeted that all materials will be obtained at a 5% discount when total production is in excess of 2700 kgs.

What variance is reported if actual material usage is 3000 kgs and the actual cost is £13500?