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A new product requires an investment of $200,000 in machinery and working capital. The total sales volume over the product’s life will be 5,000 units. The forecast costs per unit throughout the product’s life are as follows:

The product is required to earn a return on investment of 35%.

What unit selling price needs to be achieved?

Options:

$54.00

$50.77

$47.00

$44.55

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Question 2

Which of the following is the LEAST appropriate basis on which to apportion the insurance costs of plant and machinery:

Options:

Machine hours

Net book value

Original cost

Replacement cost

Question 3

Which one of the following is a characteristic of strategic financial information?

Options:

Detailed and accurate

Provided mainly to junior managers

Provided daily to keep managers informed

Provides information for long term decision making

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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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