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| Section | Weight | Objectives |
|---|---|---|
| Planning and Control | 30% | - Performance Measurement and Control
|
| Decision Making | 35% | - Short-Term Decision Making
|
| The Context of Management Accounting | 10% | - Purpose of Management Accounting
|
| Costing | 25% | - Cost Identification and Classification
|
A small airport's management accountant has prepared the following management report on the performance of its four retail outlets.
Which retail outlet has the highest contribution per square metre?
Correct Answer: B š³ļø
A company makes and sells a range of products. The standard details per unit for one of these products, product X, are as follows.
To meet sales demand, the company must obtain 2,000 units of product X next month. There is sufficient labour capacity to produce 1,500 of these units in-house during normal time. However, any production above this level would require overtime working which would be paid at a premium of 50%.
The company can buy as many units of product X as it wishes next month from an external supplier at a price of $120 per unit.
What is the total financial benefit to the company of purchasing the appropriate number of units from the external supplier rather than producing them in-house?
Correct Answer: B š³ļø
A company which manufactures and sells one product has fixed costs of $80,000 per period. The selling price per unit of $25 generates a contribution/sales ratio of 40%.
How many units would need to be sold in a period to earn a profit of $10,000?
Correct Answer: D š³ļø
A confectionery manufacturer is considering adding a new product to the current range. Forecast data for the product are as follows.
Incremental fixed costs attributable to the new product are forecast to be $24,000 each period.
The forecast sales volume of 180 units is insufficient to achieve the target profit of $10,000 each period.
Which of the following statements is correct?
Correct Answer: A š³ļø
An organisation produces and sells a single product. The organisation's management accountant has reported the following information for the most recent period.
Which TWO of the following statements are valid? (Choose two.)
Correct Answer: B,E š³ļø
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