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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 THREE of the following statements could explain why a favourable sales volume contribution variance has arisen?

Options:

A.

The actual selling price was higher than standard

B.

The actual selling price was lower than standard

C.

The original budgeted sales volume was set unrealistically high

D.

The original budgeted sales volume was set unrealistically low

E.

Higher quality output attracted more customers than expected

F.

The actual contribution per unit was higher than standard

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Question 2

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

Question 3

Refer to the exhibit

Zeff Ltd has forecast that the relationship between total overheads and machine hours will be as follows:

If the budget is to be based on 4,000 machine hours, the fixed overhead absorption rate will be:

Give your answer to 2 decimal places.

Options:

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