MN2405 Q&A
Which two of the following statements about the accountant's breakeven charts are correct: - =(i)
The fixed costs are depicted by a straight line parallel to the vertical axis
(ii) The sales revenue line passes through the origin (0,0)
(iii) The total cost line cuts the vertical axis at the point which is equal to the fixed costs for the
period
(iv) The breakeven point is the point where the sales revenue line crosses the fixed cost line
2 and 3
Prime cost is:
The same as the fixed cost of manufacturing one unit
The total of all direct costs
Any cost that does not vary as production volume changes
The total of all costs incurred in manufacturing a product - =Prime cost is the total of all direct
costs.
Beyond Budgeting has been reported to have two major advantages Select which two of the
below advantages these are:
-Its processes use more detailed budget analysis
-It is a centralised process where leaders plan and control most of organisations.
-It is a decentralised process where localised knowledge and training for lower ranks is needed
-It is a more adaptive process than traditional budgeting consequently leading to quicker decision
making - =-It is a decentralised process where localised knowledge and training for lower ranks
is needed
-It is a more adaptive process than traditional budgeting consequently leading to quicker decision
making
Which one of the following is not a disadvantage for incremental budgeting?
a.
,Allows budgetary slack to be rolled forward
b.
Costs and resources are not necessarily used for appropriate activities
c.
Not appropriate for stable environment
correct review budgeting chapters
d.
Out of date if environment is changing - =Not appropriate for stable environment
Which one of the following budgeting methods does the description below best describe?
This budget adapts from the previous budget but every period learns from last period changes.
Consequently it adjusts the future months for revised changes and adds another period on.
Select one:
a. Cash Budget
b. Rolling budget
c. Incremental budget
d. Zero based budget - =Rolling budget
A business makes personalized mugs. The paint needed for the personalized images cost £5 per
gram
Sales Units of Mugs
June - 2000
July - 1000
August - 1500
Each Mug requires 5 grams of paint.
, The mugs are produced in the month of sale. Paint is bought and paid for in the month prior to
production.
What is the figure to be included for July's cash budget for Paint purchase? - =The correct
answer is: £37,500
When you are being asked to review your friends work which ethical principle are you most at
risk of breaking?
Select one:
a. confidentiality
b. prudence
c. objectivity
d. integrity - =objectivity
In preparing a statement to support management decisions about whether or not to close down a
division of a company, general overheads that are not allocated to the division on a cause and
effect basis will be: - =Excluded from the statement showing the division profit or loss because
are not caused by the activities of the division
The following two statements are about make or buy decisions where the business is considering
outsourcing the whole of production of one component.
Statement One: The original cost of the production equipment is a relevant cost
Statement Two: The amount that would be received if the original production equipment were
sold is a relevant cost
Decide whether the statements are true or false.
Select one:
-Statement One is false and Statement Two is true
-Statement One is true and Statement Two is false
-Both statements are true
-Both statements are false - =Statement One is false and Statement Two is true
Which two of the following statements about the accountant's breakeven charts are correct: - =(i)
The fixed costs are depicted by a straight line parallel to the vertical axis
(ii) The sales revenue line passes through the origin (0,0)
(iii) The total cost line cuts the vertical axis at the point which is equal to the fixed costs for the
period
(iv) The breakeven point is the point where the sales revenue line crosses the fixed cost line
2 and 3
Prime cost is:
The same as the fixed cost of manufacturing one unit
The total of all direct costs
Any cost that does not vary as production volume changes
The total of all costs incurred in manufacturing a product - =Prime cost is the total of all direct
costs.
Beyond Budgeting has been reported to have two major advantages Select which two of the
below advantages these are:
-Its processes use more detailed budget analysis
-It is a centralised process where leaders plan and control most of organisations.
-It is a decentralised process where localised knowledge and training for lower ranks is needed
-It is a more adaptive process than traditional budgeting consequently leading to quicker decision
making - =-It is a decentralised process where localised knowledge and training for lower ranks
is needed
-It is a more adaptive process than traditional budgeting consequently leading to quicker decision
making
Which one of the following is not a disadvantage for incremental budgeting?
a.
,Allows budgetary slack to be rolled forward
b.
Costs and resources are not necessarily used for appropriate activities
c.
Not appropriate for stable environment
correct review budgeting chapters
d.
Out of date if environment is changing - =Not appropriate for stable environment
Which one of the following budgeting methods does the description below best describe?
This budget adapts from the previous budget but every period learns from last period changes.
Consequently it adjusts the future months for revised changes and adds another period on.
Select one:
a. Cash Budget
b. Rolling budget
c. Incremental budget
d. Zero based budget - =Rolling budget
A business makes personalized mugs. The paint needed for the personalized images cost £5 per
gram
Sales Units of Mugs
June - 2000
July - 1000
August - 1500
Each Mug requires 5 grams of paint.
, The mugs are produced in the month of sale. Paint is bought and paid for in the month prior to
production.
What is the figure to be included for July's cash budget for Paint purchase? - =The correct
answer is: £37,500
When you are being asked to review your friends work which ethical principle are you most at
risk of breaking?
Select one:
a. confidentiality
b. prudence
c. objectivity
d. integrity - =objectivity
In preparing a statement to support management decisions about whether or not to close down a
division of a company, general overheads that are not allocated to the division on a cause and
effect basis will be: - =Excluded from the statement showing the division profit or loss because
are not caused by the activities of the division
The following two statements are about make or buy decisions where the business is considering
outsourcing the whole of production of one component.
Statement One: The original cost of the production equipment is a relevant cost
Statement Two: The amount that would be received if the original production equipment were
sold is a relevant cost
Decide whether the statements are true or false.
Select one:
-Statement One is false and Statement Two is true
-Statement One is true and Statement Two is false
-Both statements are true
-Both statements are false - =Statement One is false and Statement Two is true
