QUESTION: 49

DRAG DROP (Drag & Drop is not supported)

The following 5 statements apply the principles of either, both or neither absorption costing and marginal costing.

Place the option labels against the relevant statements.

See Explanation section for answer.

Answer(s): A

Explanation:

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QUESTION: 50

A company develops computer software programs to meet each client's specific requirements. The management accountant is considering introducing a standard costing system.

Which THREE of the following are reasons that support the case for the company's introduction of a standard costing system?

It will enable the company to make a direct comparison of costs for each program developed.
It will enable the company to better focus on the quality of its service.
It will provide a system of control.
It will aid the budget setting process.
It will simplify the work-in-progress valuation.

Answer(s): C,D,E

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QUESTION: 51

A company is basing its budget on predicted sales of one of its products. They have tasked you with forecasting the sales in year 2. The company has found that a fairly accurate prediction can be found when the trend

is calculated like so:

a = 10,000

b = 2,000

The sales of year 1 were affected by seasonal variation and were as follows:

Q1:12,500

Q2:14,200

Q 3:15,400

Q 4:19,650

You use a multiplicative model and round percentages to the nearest whole percent.

Select ALL the correct quarterly forecasts of year 2 from the list.

Year 2 Q1 = 20,800
Year 2 Q2 = 22,220
Year 2 Q3 = 24,960
Year 2 Q4 = 27,340

Answer(s): A,B

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QUESTION: 52

Forecast sales demand of product W next period is 6,800 units. Product W requires 5 kg of material Y, seven hours of skilled labour and six hours of semi-skilled labour.

Availability of resources for next period is forecast as follows:

No inventories are held.

What is the principal budget factor for next period?

Sales demand
Availability of material Y
Availability of skilled labour
Availability of semi-skilled labour

Answer(s): C

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Free P1 Management Accounting Exam Braindumps (page: 13)

QUESTION: 49

Explanation:

QUESTION: 50

QUESTION: 51

QUESTION: 52