ACCA Q4

Which of the following statements it’s true about the factors that affect pricing decisions?

• Information about a competitor in a perfect market affects pricing decisions

• Managers must always be aware of the competition when pricing their products

• Increase in price in a substitute product doesn’t affect pricing decisions

• Informations about competitors technology is not useful for pricing decisions

Which of the following groups would be least likely to receive detailed management accounting reports?

• Production supervisors

• Sales managers

• Stockholders

• Distribution managers

Company A sells 100 watches a day. FC=22’000. VC per watch = 300. P = 1’200. How would be the daily profit be affected if the sales dropped by 10%?

• Profit reduced by 9k

• Profit reduced by 3k

• Profit reduced by 59k

• Profit reduced by 12k

Managers use management accounting informations to …

• Comunicate, develop and implement strategies

• Ensure that the fin. S. Are consistent with the IFRS standards.

• Help external users such investors and banks

• Comunicate the firm’s fin. Position to stakeholders

The fundamental cost objects of ABC are …

• Cost drivers

• Products

• Activities

• Services

Which pf the following identifies an estimated price costumers are willing to pay and then computes the cost to be achieved to earn the desired profit?

• Peak-load costing

• Target costing

• Cost-plus pricing

• Kaizen costing

Which of the following statements is true?

• Fixed costs have cost drivers over the short run

• Over the short run, all costs have cost drivers

• Volume of production is a cost driver of distribution costs

• There is a cuse-and-effect relationship between the cost driver and the amount of cost

Contribution margin equals …

• Revenues - VC

• Revenues - FC

• Revenues - Periodic costs

• Revenues - Product costs