Exam 4: BA2 - Strategic Management Question Tutorial

A company operates an integrated standard cost accounting system. The standard price of raw material A is $20 per litre. At the start of period 1, the inventory of 500 litres of raw material A was valued at $20 per litre. During period 1, 100 litres of raw material A were purchased at an actual price of $21 per litre. During period 2, 550 litres of raw material A were issued to Job 789. In respect of the above events, which TWO of the following statements are correct? (Choose two.)

A sales manager has analysed a sample of 350 sales transactions from the latest period. The manager wishes to investigate: how many customers made their purchase online using the internet and how many purchased by telephone. how many were new customers and how many were placing repeat orders. The following table shows the results of the analysis. 11ec37eb_8baf_d0ba_97b9_ab016a67b222__00 If the pattern of sales occurs next period, the probability of a particular sale being a repeat order placed online is closest to:

The budget and actual cost statements for the production department for the latest period were as follows. 11ec37eb_8baf_8298_97b9_bbe728f13da1__00 Notes. The 10% increase in production was required to meet unexpected additional sales demand. The production manager is responsible for negotiating the price of materials with suppliers. The normal working time is 900 hours per period. Any overtime worked above these 900 hours is paid at a premium of 50%. In preparing the flexible budget for the latest period, which TWO of the following statements are correct? (Choose two.)

Which THREE of the following are included in the Global Management Accounting Principles? (Choose three.)

A new product requires an investment of $200,000 in machinery and working capital. The total sales volume over the product's life will be 5,000 units. The forecast costs per unit throughout the product's life are as follows: 11ec37eb_8bae_7122_97b9_9563b4522be1__00 The product is required to earn a return on investment of 35%. What unit selling price needs to be achieved?

Which of the following statements relating to risk and uncertainty is correct?

A company produces a single product for which the following cost data are available. 11ec37eb_8bb0_45ee_97b9_b1d66e52d626__00 Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs. What is the marginal cost per unit?

The following data relate to the latest period. 11ec37eb_8baf_3476_97b9_6b632ba0e6a0__00 A statement is to be prepared that reconciles the difference between the flexible budget profit and the actual profit. Which TWO of the following will appear on this statement? (Choose two.)

Based upon extensive historical evidence, a company's daily sales volume is known to be normally distributed with a mean of 1,728 units and a standard deviation of 273 units. What is the probability that, on any one day, the sales volume will be at least 1,300 units?

A small airport's management accountant has prepared the following management report on the performance of its four retail outlets. 11ec37eb_8bad_fbf0_97b9_bfdbdffb20a4__00 Which retail outlet has the highest contribution per square metre?

The following is an extract from a budgetary control report for the latest period: 11ec37eb_8bae_9833_97b9_1fd3c29e0753__00 The budget variance for prime cost is:

An organisation's management report contains the following data: 11ec37eb_8baf_f7cb_97b9_859e6dd55657__00 Which division has the highest operating margin percentage?

A company uses standard absorption costing. Budgeted and actual data for the latest period are as follows. 11ec37eb_8bae_2301_97b9_89cced9f71b7__00 What was the production overhead absorption rate per unit?

In responsibility accounting, costs and revenues are grouped according to:

Which of the following is NOT a valid purpose of budgeting?

The year-to-date results at the end of month 9 included sales revenue of $3,600,000 and variable costs of $2,100,000. During month 10, sales revenue was $450,000 and variable costs were $270,000. What year-to-date contribution to sales ratio (C/S ratio) would be reported at the end of month 10?

A company is considering investing $57,000 in a machine that will last for five years, after which time it will have no value. The machine will generate additional revenue of $190,000 each year. Annual running costs, including depreciation of $11,400 will amount to $168,400. Assuming that all cash flows occur evenly, the payback period of the investment in the machine is closest to:

Which THREE of the following are parts of the master budget? (Choose three.)

Which of the following is NOT a characteristic of useful operational level information?

Assume that a unit of output is the cost object. Which of the following statements is valid?