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MA – Management Accounting

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Showing 4–6 of 10 questions

Question 4

Hui is responsible for all aspects of performance of the retail outlet which she manages, with the exception of investment.

All investment decisions are made by the head office management team.

What type of responsibility centre is Hui accountable for?

Select an option, then click Submit answer.

  • ○

    Cost centre
  • ○

    Revenue centre
  • ○

    Profit centre
  • ○

    Investment centre
Question 5

On the first day of the new financial year, the value of the non-current assets held by Vieta Co increased because the directors implemented a policy of revaluation.

How will the company’s return on capital employed (ROCE) and net profit margin ratios for the year be affected?

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  • ○

    ROCE = Increase, Net profit margin = Increase
  • ○

    ROCE = Increase, Net profit margin = Decrease
  • ○

    ROCE = Decrease, Net profit margin = Increase
  • ○

    ROCE = Decrease, Net profit margin = Decrease
Question 6

The marketing director of Peek Co has suggested that, despite an anticipated increase in variable cost per unit of $2, the selling price of the product manufactured by one of the divisions should be reduced by 3% to increase sales volume. The product is currently sold for $110 per unit which generates a contribution/sales ratio of 32%. Fixed costs for the next year are estimated to be $1,250,000.

What will be the breakeven sales volume in the next year (to the nearest unit)?

Select an option, then click Submit answer.

  • ○

    41,806
  • ○

    35,511
  • ○

    39,062
  • ○

    40,323