BA2 - Fundamentals of Management Accounting exams.
Question — (Single Choice)
Refer to the exhibit.
DS is manufacturing company that uses an integrated accounting system. The following payroll data
is available for the month of August:
The Employers' National Insurance for the period was $13,790. An analysis of the wages is as follows:
Which of the following factors affect the budgeted cash flow:
(a) Funds from the issue of share capital
(b) Bank Interest on a long term loan
(c) Depreciation on fixed assets
(d) Bad debt write off
Answer:B
Question — (Single Choice)
Which of the following cannot be used to split costs into fixed and variable elements?
Answer:A
Question — (Single Choice)
In order to provide information that is suitable for control purposes, the budget must be:
Answer:C
Question — (Single Choice)
If the fixed costs are increased, the point at which the line plotted on a profit/volume (PV) graph cuts
the horizontal axis will:
Answer:D
Question — (Single Choice)
Refer to the Exhibit.
Fabex Ltd manufactures a household detergent called "Clear". The standard data for one of the
chemicals used in production (chemical XTC) is as follows:
(a) 50 litres used per 100 litres of 'Clear' produced
(b) Budgeted monthly production is 1000 litres of 'Clear'.
The closing inventory of chemical XTC for November valued at standard price was as follows:
Actual results for the period during December were as follows:
(a) 500 litres of chemical XTC was purchased for £1300.
(b) 550 litres of chemical XTC was used.
(c) 900 litres of 'Clear' was produced.
It is company policy to extract the material price variance at the time of purchase.
What is the total direct material price variance (to the nearest whole number)?
Answer:A
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