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QUESTION NO: 1
VL manufactures a single product. The management accountant has estimated that the margin of safety as a percentage of budgeted sales is 25%. The company's profit/volume ratio is 20%, variable costs are $8 per unit and budgeted sales for the year are 80,000 units.
The budgeted fixed costs for the year, to the nearest $000, are.
Answer:
$120000
QUESTION NO: 2
Which one of the following is an advantage of business partnering roles for the management accounting function within an organisation?
A. Management accounting practices are more likely to be consistent throughout the organisation
B. The management accountant is more likely to be focused on the objectives of the organisation as a whole
C. Communications are improved between the managers and the management accountant
D. Costs are reduced
Answer: C
QUESTION NO: 3
Why is it important to have a professional body such as CIMA in management accounting?
A. To increase the employability of accountants
B. To punish those who breach standards
C. Helps make sure certain standards are set and maintained
D. Regulates the amount accountants in circulation
E. Ensures certain standards are set and maintained
Answer: E
QUESTION NO: 4
Refer to the exhibit.
The budget for WP for the month of September contained the following data:
During the month the actual number of units produced was 1,860. The management accounts showed a direct material price variance of $1,200F and direct material usage variance of $180A. The direct materials purchased were 1,200 kg.
The actual quantity of material used in the month was
Answer:
960 kg
QUESTION NO: 5
Refer to the exhibit.
The following information is available for a production process:
The cost per unit of good output is:
Give your answer to 2 decimal places.
Answer:
£13.17
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Updated: May 28, 2022