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P2 Advanced Management Accounting Exam Study Material

P2 Advanced Management Accounting Question 2:

K Supermarket spends $80,000 per year on checking and processing receipts of inventory. Annual warehouse costs are a further $70,000 per year. These costs are currently treated as fixed overheads in the company's costing system. As an experiment, the company is preparing a direct profitability analysis of a small range of products, including fresh grapes. K Supermarket receives a total of 3,600 deliveries every year. 20% of these deliveries are of perishable goods such as grapes. It takes twice as long to process a delivery of perishable goods compared to a normal delivery because perishable goods have to be checked more carefully. Half of the warehouse costs are for the chilled store that is used to store perishable goods. At any time, the chilled store has 800 kilos of perishable goods in stock. K Supermarket receives 150 deliveries of grapes every year. Each delivery is for 100 kilos of grapes. The grapes spend an average of two days in the chilled store before they are sold. Calculate the total cost per kilo of checking, processing and storing grapes that should be taken into account in determining the profitability of grapes. Give your answer to the nearest whole cent.


 
Answer: 61 cents

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P2 Advanced Management Accounting Exam Sample Questions

P2 Advanced Management Accounting Question No 1:

An electronics company sells a range of tablet computers. Tablet computers come complete with an operating system that is regarded as the market leader. The company aims to launch a new version of its hardware every eighteen months and a major update to its software every three years. The latest version of the tablet computer is always sold at a higher price, but the older version that has been replaced is then sold for a time at a discounted price. Which pricing model does this company appear to be using?


A. Penetration and loss leader pricing
B. Penetration and product bundling
C. Skimming and loss leader pricing
D. Skimming and product bundling


Answer: D

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