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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

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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Question 2

Using Porter's value chain, place the tokens to correctly categories the following activities of a manufacturing company.

Options:

Question 3

A long established organization has recognised the need to make urgent changes to the way it operates in order to remain competitive. The organization wishes to dramatically improve its performance through a fundamental rethinking and radical redesign of its existing activities.

Which of the following techniques should be used to achieve this?

Options:

A.

Functional analysis

B.

Kaizen costing

C.

Business process re-engineering

D.

Process innovation

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