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Advanced Management Accounting
Last Update Apr 26, 2024
Total Questions : 184
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A product requires one each of three different components.
Faulty components are identified only at the end of the manufacturing process.
The following average fault rates have been identified:
Component A – 1 in 100
Component B – 1 in 20
Component C – 1 in 10
The probability that a unit of finished product contains no faulty components is:
In order to support decision making, management accounting information categorizes costs in a variety of ways.
Responsibility accounting primarily distinguishes between costs on the basis that they are either:
A company has invested $500,000 in developing a new product and requires a return of 12% on this investment.
The company has researched the market and has set the selling price for the new product at $300 per unit. At this price, sales volume for next year is forecast to be 500 units. The forecast unit cost is $210.
What is the target cost gap per unit for the coming year?
Give your answer to the nearest whole $.
TESTED 27 Apr 2024
