Question 22

Consider the following two statements:Statement 1: Cost volume profit analysis is a decision model that applies principles of absorption costing. Statement 2: In cost volume profit analysis, it is assumed that production and sales level are at par

Select one:

a. Both Statements are true

b. Both Statements are false

c. Statement 1 is true and statement 2 is false

d. Statement 1 is false and statement 2 is true

Question 23

Hajia Banda Ltd budgeted its total overhead for a month as GHC10,000, and budgeted output level as 5,000 units. Actual production for the period is 4,000 units and total overhead cost amounted to GHC16,000. Overhead absorption rate (OAR) for the period is

Select one:

a. GHC2.00

b. GHC2.50

c. GHC3.00

d. GHC4.00

Question 24

Select the only true statement among the following options

Select one:

a. Management accounting information relies mainly on financial accounting

b. Management accounting information is prepared annually to meet legal requirements

c. Management accounting reports are expected to conform to International Financial reporting standards

d. Management accounting provides information for planning, decision making, performance management and control

Question 25

Which of the following is not a component of a master budget?

Select one:

a. Budgeted Statement of Profit and Loss

b. Sales Budget

c. Budgeted Statement of financial position

d. Cash Budget