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BA2 Exam Dumps : Fundamentals of Management Accounting

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Fundamentals of Management Accounting Questions and Answers

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Question 1

Which of the following categories of costs is the most relevant for decision making?

Options:

A.

Current costs

B.

Notional costs

C.

Estimated future costs

D.

Costs already incurred which are known with certainty

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Question 2

Refer to the Exhibit.

A company operates an absorption costing system. The management accounts show that fixed production overheads were over-absorbed in the period.

Which FOUR combinations could possibly have resulted in this situation?

Options:

A.

Combination A

B.

Combination B

C.

Combination C

D.

Combination D

E.

Combination E

F.

Combination F

G.

Combination G

Question 3

Over absorption of overhead will always arise when:

Options:

A.

actual overhead incurred is lower than budgeted overhead

B.

actual overhead incurred is lower than absorbed overhead

C.

absorbed overhead is lower than actual overhead incurred

D.

absorbed overhead is higher than budgeted overhead

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