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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

In process costing, the term equivalent units refers to :

Options:

A.

Units of the same size and weight

B.

The conversion of partly completed units into an equivalent number of completed units

C.

The number of units produced in an equivalent time period of the previous month

D.

The valuation of products on a weight or volume of output basis

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Question 2

In investment appraisal, the internal rate of return is

Options:

A.

the target rate of return for all investment proposals

B.

the rate at which a project’s cash inflows is equal to its cash outflows

C.

the rate at which the present value of a project’s cash inflows is zero

D.

the rate at which the present value of a project’s cash inflows is equal to the present value of its cash outflows

Question 3

Which of the following statements is correct?

(i) Public sector bodies use annual budgets and thus have no need for longer term strategic planning information

(ii) Public sector budgets are fixed budgets therefore the use of flexible budgets for cost control purposes is not appropriate

(iii) Public sector performance indicators include both financial and non-financial information

Options:

A.

(i) and (ii)

B.

(ii) and (iii)

C.

(ii) only

D.

(iii) only

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