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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

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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Question 2

Refer to the exhibit.

Which is the correct journal entry required to record a favorable variable overhead expenditure variance in an integrated accounting system?

The correct journal entry required to record a favorable variable overhead expenditure variance in an integrated accounting system is:

Options:

A.

A

B.

B

C.

C

D.

D

Question 3

In investment appraisal, the net present value (NPV) is

Options:

A.

The discount rate at which the project's cash inflows are equal to the cash outflows.

B.

The present value of the project's cash inflow.

C.

The difference between the present value of the project's cash inflows and the present value of the cash outflows.

D.

The difference between the present value of the project's profit and the present value of the initial investment.

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