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MA – Management Accounting

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Showing 1–3 of 10 questions

Question 1

Consider the following uses of budgets in planning:

(i) To ascertain the resources needed to achieve corporate objectives, given a specific level of activity;

(ii) To prepare contingency budgets, based on varying levels of activity.

Which type of budget (fixed or flexible) is most appropriate for these uses?

Select an option, then click Submit answer.

  • ○

    Fixed = (i) and (ii), Flexible = neither (i) nor (ii)
  • ○

    Fixed = (i) only, Flexible = (ii) only
  • ○

    Fixed = (ii) only, Flexible = (i) only
  • ○

    Fixed = neither (i) nor (ii), Flexible = (i) and (ii)
Question 2

Which of the following statements about target costing is/are correct?

i) The features included in the product are often identified after the target cost has been established.

ii) Target costing will often continue to be used after the product has been launched.

Select an option, then click Submit answer.

  • ○

    Both (i) and (ii)
  • ○

    (i) only
  • ○

    (ii) only
  • ○

    Neither (i) nor (ii)
Question 3

Dalf Co calculates the margin of safety for each of its products separately. Data for one product are shown below:

Selling price per unit $85

Variable cost per unit $53

Budgeted sales volume 80,000 units

Margin of safety 22%

What is the value of fixed costs attributed to the product?

Select an option, then click Submit answer.

  • ○

    $3,307,200
  • ○

    $1,996,800
  • ○

    $2,560,000
  • ○

    $616,000