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P2 Exam Dumps : Advanced Management Accounting

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Advanced Management Accounting Questions and Answers

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Question 1

Which TWO of the following expressions are correct?

Options:

A.

1 + money rate = (1 + real rate) x (1 + inflation rate)

B.

1 + real rate = (1 + money rate) / (1 + inflation rate)

C.

1 + real rate = (1 + inflation rate) / (1 + money rate)

D.

1 + money rate = (1 + inflation rate) / (1 + real rate)

E.

1 + inflation rate = (1 + money rate) x (1 + real rate)

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Question 2

An organization wants to increase the use value that customers place on one of its products - a laptop computer.

Which of the following actions, taken to increase the value to the customer, would increase the product's use value?

Select ALL that apply.

Options:

A.

Launching a marketing campaign designed to build the company's brand.

B.

Installing a touch screen to improve the computer's functionality.

C.

Changing the color of the computer's case.

D.

Adopting a premium pricing strategy for the computer.

E.

Fitting advanced components to improve the computer's performance.

Question 3

Endure Co. makes 1,000 units ofX and 2,000 units of Y.

Costs for X: Material $4, labour $8, direct overhead $2, fixed cost $4.

Costs for Y: Material $9, labour $9, direct overhead $4, fixed cost $6.

Selling price for X and Y are S19 and $25 respectively. Another company can sell ready made product X and product Y's to Endure Co, this company sells X at $12 and Y at $21. Advise Endure Co. on what would be the

most cost effective way to source products X and Y.

Options:

A.

Endure should buy X and Yfrom the other supplier.

B.

Endure should buy X but produce Y themselves.

C.

Endure should produce both X and Y themselves.

D.

Endure should buy Y but produce X themselves.

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