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Fundamentals of management accounting
Last Update: Apr 17, 2024
392 Questions
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Fundamentals of management accounting Practice Questions

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Fundamentals of management accounting Questions and Answers

Questions 1

An organisation produces and sells a single product. The organisation’s management accountant has reported the following information for the most recent period.

Which TWO of the following statements are valid? (Choose two.)



If the contribution to sales ratio changed to 30%, the breakeven point would become higher.


If the fixed cost changed to $445,000, the breakeven point would not change.


If the sales volume changed to 220,000 units, the breakeven point would not change.


If the selling price changed to $22 per unit, the breakeven point would become lower.


If the variable cost changed to $16 per unit, the breakeven point would become lower.

Questions 2

The International Federation of Accountants (IFAC) stated that it was important that “accountants in business” should understand what the drivers of stakeholder value are. Which of the following statements is valid?



Anyone with an interest in an organisation can be considered to be one of its stakeholders.


Stakeholders must be external to the organisation.


Only an organisation’s shareholders and employees can be considered to be its stakeholders.


Only an organisation’s shareholders can be considered to be its stakeholders.

Questions 3

The following data are available for a company that produces and sells a single product.

The company’s opening finished goods inventory was 2,500 units.

The fixed overhead absorption rate is $8.00 per unit.

The profit calculated using marginal costing is $16,000.

The profit calculated using absorption costing and valuing its inventory at standard cost is $22,400.

The company’s closing finished goods inventory is:



3,300 units


1,700 units


3,900 units


8,900 units