Big Black Friday Sale 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: save70

A company operates an integrated standard cost accounting system. The standard price of raw material A is $20 per litre. At the start of period 1, the inventory of 500 litres of raw material A was valued at $20 per litre. During period 1, 100 litres of raw material A were purchased at an actual price of $21 per litre. During period 2, 550 litres of raw material A were issued to Job 789.

In respect of the above events, which TWO of the following statements are correct? (Choose two.)

Options:

The raw material inventory at the end of period 1 should include 100 litres valued at $21 per litre.

An adverse material price variance should be recorded in the statement of profit or loss for period 1.

The raw material inventory at the end of period 2 should be valued at $20 per litre.

An adverse material price variance should be recorded in the statement of profit or loss for period 2.

The first 500 litres of raw material A issued should be debited to the Job 789 account at $20 per litre, and the remaining 50 litres at $21 per litre.

Buy Now

Question 2

Which of the following would have an impact on the cash budget?

(a) Change in payables terms

(b) Change in the rate of depreciation

(d) Change of inventory holding policy

Options:

None of the above

(a), (b) and (c)

(a), (c) and (d)

All of the above

Question 3

A product sells for £10 per unit and has an annual break-even volume of 50,000 units. The annual fixed costs are £100,000.

The variable cost per unit is:

Give your answer to 2 decimal places.

Options:

Get Free BA2 Questions and Answers

Big Black Friday Sale 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: save70

BA2 Exam Dumps : Fundamentals of management accounting

CIMA Related Exams

Verified By IT Certified Experts

CertsTopics.com Certified Safe Files

Up-To-Date Exam Study Material

99.5% High Success Pass Rate

100% Accurate Answers

Instant Downloads

Exam Questions And Answers PDF

Try Demo Before You Buy

Fundamentals of management accounting Questions and Answers

Options:

Answer:

Options:

Answer:

Options:

Answer:

CompTIA

Fortinet

Microsoft

Salesforce