CIMAPRA17-BA2-1-ENG

CORRECT TEXT Refer to the exhibit. The following data relates to Department A within a business unit. The overhead absorption rate per direct labour hour for Department A is: Give your answer to 2 decimal places.View AnswerAnswer: £7.93

CORRECT TEXT Refer to the Exhibit. The following forecast cash flows relate to a proposed investment in new delivery vehicles at a total cost of $75,000. The internal rate of return (IRR) of the proposed investment is (to two decimal places)View AnswerAnswer: 14.20%

CORRECT TEXT A company currently allows a discount of 10% to customers who pay at the time of purchase. If 20% of customers pay immediately, the extra sales needed in July to increase the cash receipts in that month by £9,000 are:View AnswerAnswer: £50001

In order to provide information that is suitable for control purposes, the budget must be:A . Computer generatedB . FixedC . FlexedD . IdealView AnswerAnswer: C

The principal budget factor can be defined as:A . The factor which has the highest value in the budgetB . The factor which limits the activities of the organisationC . The factor which is most likely to result in an adverse varianceD . The factor which is least likely to...

Which of the following categories of costs is the most relevant for decision making?A . Current costsB . Notional costsC . Estimated future costsD . Costs already incurred which are known with certaintyView AnswerAnswer: C

The following costs are incurred by a company which owns a five star hotel. Which THREE of the items would normally be classified as variable costs?A . AdvertisingB . FoodC . Depreciation on gym equipmentD . Restaurant Manager's salaryE . BeveragesF . Outside laundry serviceView AnswerAnswer: B,E,F

Refer to the exhibit. WS operates an integrated accounting system. Transactions relating to production overheads for the month of May were as follows: Indirect Material costs were $15,000 Indirect Labour Costs were $45,000 Production overheads of $58,000 were incurred during the period. Depreciation of factory machinery amounted to $32,000. Overheads...

Refer to the exhibit. T operates a process costing system. Data is available for Process A for the month of July. Inputs for the month: Normal losses are 15% of input and can be sold for $6 per kg. Actual output was 2,600 kg. There is no opening or closing...

An increase in the selling price per unit, will cause the point at which the line plotted on a profit/volume (PV) graph intersects the horizontal axis to:A . Move to the leftB . Move to the rightC . DoubleD . Stay where it isView AnswerAnswer: A