Refer to the exhibit.

The following conventional breakeven chart has been drawn for a product. Forecast sales volume for next period is V units.

Which ONE of the following distances on the graph indicates the forecast profit for next period?

Which one of the following is an advantage of placing the management accounting function within a centralized finance department?

A company has produced its cash budget for the year and is concerned at the level of the cash deficit being shown. Which THREE of the following would enable the company to reduce its cash deficit in the short term?

Johnson & Smith is a huge corporation with many different departments covering hundreds of activities. They had switched to this new budgeting technique as it seemed as though it would help them allocate their

limited funds better.

It was successful to some extent as each manager was required to look at every cost his department accrued. They would then be responsible for coming up with new ways of performing these activities.

It became obvious that certain managers were unable to handle these paperwork intensive demands and so the company will be reverting back to a system that focuses primarily on cost drivers next year.

What budgeting technique will they be using next year?

Refer to the exhibit.

The output and costs for two periods were as follows:

Fixed costs will remain constant, but during Period 7, the variable cost per unit will increase by 25%. The output for Period 7 will be 1,600 units.

The budgeted total cost for period 7 will be:

Put simply, the role of the management accountant it to_______.

The budget and actual cost statements for the production department for the latest period were as follows.

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.)

A management accountant has forecast the following cash inflows from four potential projects.

All four projects require the same initial investment and will last for four years. They all result in a positive net present value but only one of the projects can be undertaken.

Which project should be selected?

Which of the following is a relevant cost?

A company which manufactures and sells one product has fixed costs of $80,000 per period. The selling price per unit of $25 generates a contribution/sales ratio of 40%.

How many units would need to be sold in a period to earn a profit of $10,000?