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P2 Questions and Answers

Question # 1

A cost centre manager's performance is monitored based on a comparison of actual and budgeted cost. A summary performance report for the latest period is shown below.

The actual costs include:

*$28,000 for allocated head office costs.

*$18,000 payment for a rental agreement entered into by the cost centre manager two years ago.

*$34,000 for depreciation.

What is the cost centre manager's controllable actual cost for the period?

Give your answer to the nearest $000.

Question # 2

Place each performance measure against the correct perspective of the Balanced Scorecard for a company that operates a chain of hotels.

Question # 3

In accordance with a just-in-time (JIT) philosophy, which of the following is regarded as a value added activity?

A.

Inspecting raw material deliveries

B.

Moving work in progress around production facilities

C.

Holding inventory

D.

Dispatching products to customers

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