certified public accountant MA Reddit Questions

Management Accounting Questions and Answers

Question 5

Which of the following comments about sales price is correct?

Options:

Market penetration will normally be achieved by a low price on initial entry to the market

Market skimming will lead to a constant price throughout the product’s life

Cost plus pricing will lead to profit beingmaximized

A target cost price will generate profit immediately following market entry

Question 6

The annual salary paid to a business's financial accountant would best be described as:

Options:

A variable cost.

A fixed production cost.

Part of prime cost.

A fixed administrative cost.

Question 7

A division manufacturing a single product which sells for $325 has the following unit cost structure:

Direct materials95

Directlabor78

Variable overheads56

Share of fixed costs45

Total cost274

In the coming period, the budgeted production volume is 10,000 units.

What is the budgeted breakeven sales volume (to the nearest unit)?

Options:

1,385 units

4,688 units

8,824 units

10,000 units

Question 8

Quastir Co manufactures a single product which sells for $48.80 per unit. At this selling price, theprofitper unit is $5.35, after apportionment of the $65,000 of fixed costs. The budgeted production and sales volume is 20,000 units.

What is the margin of safety, expressed in units (to the nearest unit)?

Options:

7,559

7,850

12,150

12,441

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certified public accountant MA Reddit Questions

Management Accounting Questions and Answers

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