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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

The materials price variance will be adverse when:

Options:

A.

The actual cost of the materials is more than the standard material cost for the output produced

B.

The actual cost of the materials purchased is more than the standard cost of the materials purchased

C.

The materials usage variance is favourable

D.

The price of materials has fallen

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Question 2

A company uses an integrated accounting system.

The accounting entries for the sale of goods on credit would bE.

Options:

A.

Debit: Receivables control accountCredit: Sales account

B.

Debit: Sales accountCredit: Finished Goods Control account

C.

Debit: Receivables control accountCredit: Cost of sales account

D.

Debit: Sales accountCredit: Receivables control account

Question 3

Refer to the exhibit.

PD manufactures a product in a process operation. Normal loss is 5% of input and occurs at the end of the process. The following data is available for the month of August:

  • Scrapped units have no value.
  • There was no opening or closing work in progress for August.

What was full cost of output to finished goods in August?

Options:

A.

$52,687

B.

$51,764

C.

$53,580

D.

$55,460

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