QUESTION: 145

A decision maker that makes decisions using the minimax regret criterion would be classified as:

Risk averse
Risk seeking
Risk neutral
Risk spreading

Answer(s): A

CORRECT TEXT
XY manufactures a range of products and uses an activity based costing system.

Budgeted production of Product B is 7,500 units.

Overheads have been identified by activity and related to appropriate cost drivers.

Product B is produced in batches of 250 units. Machines have to be reset after every batch and quality inspections are carried out on every third batch.

What is the total overhead cost per unit of Product B?

Give your answer to two decimal places.

$1.40
$0.140

Answer(s): A

Reveal Solution Next Question

QUESTION: 147

ABC uses an activity-based costing system.

The company manufactures three products, details of which are given below:

Total material movement costs for the period are $10,000.

The material movement cost per unit for Product Z (to the nearest $0.01) is:

$10.67
$2.71
$3.23
$7.62

Answer(s): A

Reveal Solution Next Question

QUESTION: 148

Sales volumes reported for the latest period are used by managers as the basis to forecast sales for the forthcoming period. The forecasts are compared with the budgeted sales and plans are adjusted to ensure that the budgeted sales are achieved.

This is an example of:

Incremental budgeting
Flexed budgets
Feedforward control
Feedback control

Answer(s): C

Reveal Solution Next Question

Free P1 Management Accounting Exam Braindumps (page: 37)

QUESTION: 145

QUESTION: 146

QUESTION: 147

QUESTION: 148