FFMA KEY EXAM QUESTIONS AND CORRECT
ANSWERS
Fixed Manufacturing overhead - CORRECT ANSWERS total fixed costs - fixed selling and
distribution costs
Total fixed costs - CORRECT ANSWERS contribution per unit x break even sales unit
Contribution per unit - CORRECT ANSWERS selling price per unit - variable price per unit
Predetermined overhead - CORRECT ANSWERS estimated total manufacturing overhead /
estimated units of allocation base
Overhead applied to a job - CORRECT ANSWERS predetermined overhead x actual units of
allocation base
Break even units - CORRECT ANSWERS Fixed costs / contribution per unit
Contribution margin ratio - CORRECT ANSWERS contribution per unit / selling price per
unit x 100
Total contribution - CORRECT ANSWERS contribution per unit x units sold
Profit - CORRECT ANSWERS total contribution - fixed costs
number of shares - CORRECT ANSWERS total share capital / nominal value per share
, total dividend - CORRECT ANSWERS number of shares x dividend per share
margin of safety - CORRECT ANSWERS total sales - break even sales
Percentage margin of safety - CORRECT ANSWERS margin of safety / total number of sales
x 100
required units - CORRECT ANSWERS fixed costs + target profit / contribution per unit
selling price per unit - CORRECT ANSWERS sales revenue / units sold
receipt for trade receivables - CORRECT ANSWERS opening trade receivables + sales on
credit - closing trade receivables
Cost of sales - CORRECT ANSWERS opening inventory + purchases - closing inventory
total manufacturing - CORRECT ANSWERS direct labour + direct materials + actual
overhead
What is accounting? - CORRECT ANSWERS the process of identifying, measuring and
communicating the economic information to permit informed judgments to users of the
information
who uses financial statments - CORRECT ANSWERS users are external
who uses accounting reports - CORRECT ANSWERS users are internal
ANSWERS
Fixed Manufacturing overhead - CORRECT ANSWERS total fixed costs - fixed selling and
distribution costs
Total fixed costs - CORRECT ANSWERS contribution per unit x break even sales unit
Contribution per unit - CORRECT ANSWERS selling price per unit - variable price per unit
Predetermined overhead - CORRECT ANSWERS estimated total manufacturing overhead /
estimated units of allocation base
Overhead applied to a job - CORRECT ANSWERS predetermined overhead x actual units of
allocation base
Break even units - CORRECT ANSWERS Fixed costs / contribution per unit
Contribution margin ratio - CORRECT ANSWERS contribution per unit / selling price per
unit x 100
Total contribution - CORRECT ANSWERS contribution per unit x units sold
Profit - CORRECT ANSWERS total contribution - fixed costs
number of shares - CORRECT ANSWERS total share capital / nominal value per share
, total dividend - CORRECT ANSWERS number of shares x dividend per share
margin of safety - CORRECT ANSWERS total sales - break even sales
Percentage margin of safety - CORRECT ANSWERS margin of safety / total number of sales
x 100
required units - CORRECT ANSWERS fixed costs + target profit / contribution per unit
selling price per unit - CORRECT ANSWERS sales revenue / units sold
receipt for trade receivables - CORRECT ANSWERS opening trade receivables + sales on
credit - closing trade receivables
Cost of sales - CORRECT ANSWERS opening inventory + purchases - closing inventory
total manufacturing - CORRECT ANSWERS direct labour + direct materials + actual
overhead
What is accounting? - CORRECT ANSWERS the process of identifying, measuring and
communicating the economic information to permit informed judgments to users of the
information
who uses financial statments - CORRECT ANSWERS users are external
who uses accounting reports - CORRECT ANSWERS users are internal
