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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

A company’s cash budgetary plans show that there will be surplus cash for three months of the forthcoming year.

Which THREE of the following would be appropriate management actions in this situation?

Options:

A.

Offer a longer credit period to new customers to boost sales

B.

Purchase new non-current assets to increase efficiency

C.

Reduce the finished goods inventory to save storage costs

D.

Pay suppliers early to obtain prompt payment discounts

E.

Repay a long-term loan to reduce interest costs

F.

Invest in a short-term deposit account

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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

The forecast costs per unit for a new product are as follows:

The company uses marginal cost plus pricing and all products are required to achieve a 40% margin.

What would be the selling price per unit?

Options:

A.

$37.80

B.

$46.20

C.

$45.00

D.

$55.00

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