Which of the following may be a reason for adverse variances when comparing budgeted with actual cash payments?
A. The cost of raw materials has increased
B. The sales price has increased
C. Sales volume has decreased
D. Productivity has decreased
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A company wants to buy a machine that will have a useful life of 10 years. The company wishes to spread payments for the machine over its useful life. What is the MOST SUITABLE way to finance this purchase?
A. Bank account overdraft
B. Issue shares in the company
C. Purchase on company credit card
D. Loan from the bank
Which of these answers shows the correct order of processes to follow to forecast sales revenue?(i) Average seasonal variation (ii) Actual = Trend + Seasonal variation (iii) Trend using three-point average(iv) Seasonal variation for each quarter
A. (i) (iv) (ii) (iii)
B. (iii) (i) (iv) (ii)
C. (iii) (iv) (i) (ii)
D. (ii) (iii) (i) (iv)
Which of the following is NOT a characteristic of useful management information?
A. It should be timely
B. It should be user-targeted
C. It should be detailed
D. It should be complete
Which TWO of the following are true?
A. Management accounts are a legal requirement
B. Financial accounts are prepared for internal decision-making
C. Financial accounts reflect activities of the whole business
D. Management accounts are used for future planning