Recorded Exam Training: Accounting For Managerial Decision Making [AMDM]

On this page, you can find the recording of the Exam practice for AMDM [Accounting For Managerial Decision Making]. Feel free to ask questions in the comment section below, we will answer them 🙂

Recording

[s3mm type=”video” files=”UM-SBE-AMDM-RET-1.mp4,UM-SBE-AMDM-RET-2.mp4,UM-SBE-AMDM-RET-3.mp4″ /]

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4 thoughts on “Recorded Exam Training: Accounting For Managerial Decision Making [AMDM]”

  1. Are the marketing costs for question 28 not relevant because we do not need to do any marketing since the offer is already on the table, or how can I understand it?

    1. You can argue in multiple ways why we do not take marketing costs into account. For example, that the offer is already on the table. However, more common and justified would be to say, that the marketing costs for this period already incurred and our decision to take on the special offer does not change them.

  2. Hey, could you please assist me in the following questions:
    -( Slide 53) Why is 6000 euros in favor of absoroption costing?

    -(Slide 55) Why an increasein Q would lead to an increase in varaible cost per unit?

    1. 1) When we overproduce (back in the formula – Profit difference), we know that we spread our fixed manufacturing cost over more units, which favors absorption costing and ultimately leads to a lower COGS and higher profit under this costing method 🙂

      2) A. An increase in selling price per unit:
      An increase in selling price per unit would reduce the breakeven quantity, not increase it, because a higher price means each unit sold contributes more to covering fixed costs.
      – B. An increase in contribution margin:
      The contribution margin is the difference between selling price and variable cost. If the contribution margin increases, fewer units are needed to cover the fixed costs, thus decreasing the breakeven quantity.
      – C. An increase in fixed cost:
      If fixed costs increase, more units will be required to cover these costs, thus increasing the breakeven quantity.
      – D. Two of the previously given answers are correct:
      Based on the analysis, only C (increase in fixed cost) would increase the breakeven quantity, making this option incorrect

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