CIMAPRA17-BA2-1-ENG

If the fixed costs are increased, the point at which the line plotted on a profit/volume (PV) graph cuts the horizontal axis will:A . DoubleB . Move to the leftC . Stay the sameD . Move to the rightView AnswerAnswer: D

The wages of a machine operator who is paid a guaranteed minimum wage plus a bonus for each unit produced would be described as A. A. Fixed cost B. Semi-variable cost C. Variable cost D. Stepped fixed costView AnswerAnswer: B

The variable overhead expenditure variance is:A . The over or under absorbed variable overheadB . The difference between the actual hours worked and the standard hours produced, multiplied by the variable overhead absorption rateC . The actual hours worked multiplied by the variable absorption rateD . The difference between the...

CORRECT TEXT Refer to the Exhibit. The following details have been extracted from the receivables collection records of SBC: The amount budgeted to be received in September from credit sales is, to the nearest £000:View AnswerAnswer: £257000

The net present value (NPV) of an investment is as follows. NPV at 14% = $6,320 NPV at 18% = ($4,600) negative The internal rate of return (IRR) of the investment is closest toA . 14.6%B . 16.0%C . 16.3%D . 20.3%View AnswerAnswer: C

CORRECT TEXT CVP Limited manufactures a single product with a selling price of $25.60. Fixed costs are $122,880 per month and the product has a profit/volume ratio of 40%. In a month when actual sales were $358,400, CVP's margin of safety in units wasView AnswerAnswer: 1996

Which of the following cannot be used to split costs into fixed and variable elements?A . Absorption costingB . High-low methodC . ScattergraphD . Line of best fitView AnswerAnswer: A

Which one of the following is a characteristic of strategic financial information?A . Detailed and accurateB . Provided mainly to junior managersC . Provided daily to keep managers informedD . Provides information for long term decision makingView AnswerAnswer: D

The variable overhead efficiency variance is:A . The same as the direct labour efficiency varianceB . The difference between the actual hours worked and the standard hours produced, multiplied by the variable overhead absorption rateC . The difference between the actual variable overheads incurred and those absorbedD . The actual...

FL uses an absorption costing system. The overhead absorption rate for production overheads is $8.60 per direct labour hour. Budgeted production overhead costs for the year were $473,000 and actual costs incurred were $468,000. 56,000 labour hours were used. Which ONE of the following statements is correct?A . Overheads were...