Management Accounting Flashcard II

Front

Data is information that has been processed in such a way as to make it meaningful for use by management in making decisions.

Back

False

Front

Which of the following is not a fundamental attribute of good information? Complete, Timely, Accurate

Back

Concise

Front

Which of the following could higher level management carry out?
Options: taking long-term decisions, taking short-term decisions, taking long-term and short-term decisions

Back

taking long-term and short-term decisions

Front

A cost which contains both fixed and variable elements, and so is partly affected by changes in the level of activity, is called

Back

A semi-variable cost

Front

A cost unit is

Back

A unit of product or service in relation to which costs are ascertained.

Front

Variable costs are conventionally deemed to

Back

be constant per unit of output

Front

In a marginal costing system, the formula "Sales - Variable Costs" is used to calculate

Back

Contribution

Front

Which of the following would be appropriate cost units for a transport business? i. Cost per tonne-kilometre ii. Fixed cost per kilometre iii. Maintenance cost of each vehicle per kilometre

Back

i and iii only

Front

Budgeted sales of X for December are 18,000 units. At the end of the production process for X, 10% of production units are scrapped as defective. Opening inventories of X for December are budgeted to be 15,000 units and closing inventories will be 11,400 units. The production budget for X for December, in units is:

Back

16,000

Front

A standard marginal costing system: i. calculates fixed overhead variances using the budgeted absorption rate per unit ii. calculates sales volume variances using the standard contribution per unit iii. values finished goods stock at the standard variable cost of production Which of the above statements is/are correct?

Back

ii and iii only