Page 19 - OCS Workbook - Day 1 Task (May 2018)

MANAGEMENT ACCOUNTING (P1) - FAMILIARISATION

3 DECISION MAKING
Note: You are unlikely to be asked to do calculations in the exam. However, the following
questions will help with familiarisation of the budgetary information.

EXERCISE 3(A) – CVP ANALYSIS

Question Your response

Calculate the budgeted fixed

production costs for 2018 and
use this to estimate total fixed
costs for 2018.

Estimate the break even sales
revenue and the associated
margin of safety for 2018,
assuming that sales are made

in constant standard mix

EXERCISE 3(B) – DECISION MAKING WITH SCARCE RESOURCES

Ignoring accessories, rank
products for production if
quality leather was restricted

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