Al Ameen LLC develops and sells computer games. Based on the market research done at the beginning of the year, the company estimates the selling price of computer game as RO 22. The company wants a profit margin of 35% on sales. Given below is the estimated cost per unit of manufacturing the product: Material cost RO 3.500, Labour cost RO 2.000, Set ups RO 4.250, Administrative costs RO 3.550, Inspection and testing RO 2.000, Selling and distribution costs RO 1.700. The Target Cost and the Cost Gap is: O a. Target Cost RO 11.750 and Cost Gap is RO 2.600 O b. Target Cost RO 17.000 and Cost Gap RO -2.700 O c. Target Cost RO 13.300 and Cost Gap RO 2.900 O d. Target Cost RO 14.300 and Cost Gap RO 2.700 The given table shows the wage expense of Amar Akbar LLC. If the delay in payment of wages is 1/5 months, the wage expense for the month of May will be: Month Wage expenses February 14,000 March 10,000 April 12,000 The following data regarding budgeted purchase of materials is furnished before you Budgeted Purchase OMR March 10,000 April 12,000 May 13,800 June 14,400 12,100 July The cash purchase is 40%. It is estimated that 60% of the credit purchase will be paid after one month of purchase and the balance on the month after that. The amount of cash paid to creditors in the month of July is: O a. RO 6480 O b. RO 8424 O c. RO 6720 O d. RO 8496 If a company normally expects a mark-up on cost of 50% and estimates that a new product will sell successfully at a price of RO 15, then the maximum cost of production should be: O a. RO 10 O b. RO 5 O c. RO 7.5 O d. RO 20 Sales budget shows the sales details as: O a. Month wise O b. All of the options listed O c. Product wise O d. Area wise Maryam LLC has two sales territories, North and South. Each salesman is expected to sell the following number of units during the first quarter of 2019. Assume the average selling price is RO 9 Month North South (units) (units) Jan 125 125 Feb 150 200 175 250 March The budgeted sales quantity and value at the end of the quarter is: O a. North 450 units RO 4500, South 650 units RO 5850 O b. North 600 units RO 5400, South 675 units RO 6075 O c. North 700 units RO 6300, South 750 units RO 6750 O d. North 450 units RO 4050, South 575 units RO 5175 The following data is provided to you: Budgeted sales OMR January 19,000 February 28,000 March 36,000 April 32,000 The cash sale is 30%. It is estimated that 75% of the credit sales will be received in the next month of sales and the balance in the month after that. The amount of cash received from debtors in the month of April is: O a. RO 21000 O b. RO 23800 O c. RO 23100 O d. RO 18025 Amira LLC uses activity-based costing for its products Supreme and Exel. The total estimated annual overhead cost for set up was RO 650,000 and the expected activity was 2500 set ups for the period. If product Exel requires 1500 set ups, the amount of overheads allocated to product Exel for set up cost would be: O a. RO 360,000 O b. RO 380,000 O c. RO 390,000 O d. RO 280,000 Which among the following is an example of tangible resource? O a. Company's brand image O b. License O c. Employee competence O d. Company's goodwill Amira LLC uses activity-based costing for its products Supreme and Exel. The total estimated annual overhead cost for set up was RO 650,000 and the expected activity was 2500 set ups for the period. If product Exel requires 1500 set ups, the amount of overheads allocated to product Exel for set up cost would be: O a. RO 360,000 O b. RO 380,000 O c. RO 390,000 O d. RO 280,000 Which among the following is an example of tangible resource? O a. Company's brand image O b. License O c. Employee competence O d. Company's goodwill Al Mahar LLC produces three types of products-Baby wipes, Baby oil and Baby shampoo. Baby wipes requires 200 purchase orders. Baby oil requires 360 purchase orders and Baby shampoo requires 240 purchase orders. The total purchase related costs amounts to RO 260,000. The purchase related overhead assigned to each of the three products were: O a. RO 260,000 for Baby wipes; RO 117,000 for Baby oil; RO 312,000 for Baby shampoo O b. RO 78,000 for Baby wipes; RO 117,000 for Baby oil; RO 65,000 for Baby shampoo O c. RO 312,000 for Baby wipes; RO 117,000 for Baby oil; RO 260,000 for Baby shampoo O d. RO 65,000 for Baby wipes; RO 117,000 for Baby oil; RO 78,000 for Baby shampoo In systematic sampling, the population is 810 and the selected sample size is 90. The sampling interval is: O a. 900 O b. 90 O c. 810 O d. 9 Maryam LLC has two sales territories, North and South. Each salesman is expected to sell the following number of units during the first quarter of 2019. Assume the average selling price is RO 9 Month North South (units) (units) Jan 125 125 Feb 150 200 March 175 250 The budgeted sales quantity and value at the end of the quarter is: If the delay in payment of wages is 14 month, which of the following statement is correct? O a. is paid in the current month and remaining half in the next month b. 1/4 of the current month is paid immediately and the balance in the next month O c. of the current month is paid immediately and 1/4 in the next month O d. Wage is paid at the end of the quarter The budget that is prepared when the level of activity for the budget period is unsure is: O a. Current budget O b. Fixed budget O c. Rolling budget O d. Flexible budget Given Production at 40% plant capacity is 400 units. The following information is furnished before you: Direct material Direct Labour Direct Expenses RO 25 per unit RO 8 per unit RO 2 per unit 14,000 Administration expenses (60% fixed) 20,000 Factory Overheads(60% variable) What will be the factory overhead cost per unit for production at 70% capacity? O a. RO 70 per unit O b. RO 29 per unit C. RO 21 per unit O d. RO 64 per unit A company has a budgeted sales of 2200 units. There are 1500 units of opening stock while the closing stock is planned to be 1800 units. What production is needed to satisfy sales? O a. 1900 units O b. 1800 units O c. 2400 units O d. 2500 units A negative balance of cash at the end of the budget period shows: O a. Surplus O b. Cash balance O c. Deficit d. Loss Consider the following data for the month of January Closing stock Production Sales 80 290 330 Based on the data, the opening stock for January will be: O a. 580 O b. 140 O c. 120 O d. 540 The given table shows the wage expense of Amar Akbar LLC. If the delay in payment of wages is 1/5 months, the wage expense for the month of May will be: Month Wage expenses February 14,000 March 10,000 April 12,000 May 10,200 June 11,400 O a. RO 11,600 O b. RO 10560 O c. RO 11,640 O d. RO 10,400 The machine setup cost of a cost centre of Al Azmi LLC is RO 50,000. During the period there were total of 200 setups. If the product XXX-1 requires 20 setups, what would be the allocation of set up cost charged to the product XXX-1? O a. RO 50,000 O b. RO 5000 O c. RO 1000 O d. RO 10,000 Which among the following is a tool of management accounting? O a. All the options listed O b. Budgeting O c. Risk analysis O d. Responsibility accounting