HA2011 Management Accounting|Factory Utility Bills

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HA2011 management accounting

Question 1    ( 7 marks)

a) Assume Domino’s Pizza is considering offering a new product—a 6-inch (15.24 cm) pizza. Identify two specific financial and two specific non-financial information the management accountant might provide to assist the management of Domino’s Pizza with the new product idea? (2 marks)

b) ‘Management accounting is always evolving due to changes in the business environment.’   Explain what this statement means and give examples on what some of the changes are. (5 marks) 

ANSWER:  ** Answer box will enlarge as you type

Question 2    (7 marks)

a) A company has the following transactions during the week.

     Purchase of $1,000 raw materials inventory

Assignment of $500 of raw materials inventory to Job 5

Payroll for 20 hours with $1,000 assigned to Job 5

Factory utility bills of $750

Overhead applied at the rate of $10 per hour

Required: What is the cost assigned to Job 5 at the end of the week? (2 marks)

HA2011 management accounting

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