Free CIMA BA2 Practice Exam with Questions & Answers | Set: 3

The materials price variance will be adverse when:

Refer to the Exhibit.

CM has produced the following budget information for next year:

The opening receivables balance represents 2 months sales. It is expected that the same level of sales will continue at an even rate throughout the year.

In an effort to improve receivables collection periods it is proposed to offer a discount of 5% for payment by cash. It is expected that 20% of customers will pay by cash. Of the remaining 80% credit sales, 40% will be settled within 1 month and 60% are expected to settle within 2 months.

What are the budgeted cash receipts from cash and credit sales in the year?

The principal budget factor can be defined as:

Which of the following industries would not use process costing?

Refer to the exhibit.

Data for October's budget for product Quest for the month of October are given below:

Each unit of Quest requires 6kg of raw materials. Strict quality control procedures are applied to the manufacturing process and normal rejection levels are 5% of finished units.

The raw materials purchases budget for the month of October is:

It is company policy that the closing inventory of finished goods must be equal to 10% of the following month's budgeted sales. The budget sales for November and December are 8,000 and 9,000 units respectively.

The budgeted production for November will be:

Refer to the exhibit.

C Ltd manufactures three products, which require the same type of materials. The following contribution and profit per unit is available:

In a period in which labour hours are in short supply, which of the following options is the rank order of production?

Refer to the exhibit.

Each unit of product ‘Smitten’ uses 5 kgs of material 'Z'.

The budgeted details for March are as follows:

It is anticipated that sales of product ‘Smitten’ in March will be 20000 units.

The amount of material 'Z' that needs to be purchased in March is:

Refer to the exhibit.

Xey Ltd. has the following budgeted information for product T4 in July:

The actual results for July were as follows:

What is the total sales margin variance?

A budget that is continuously updated by adding a further accounting period when the earliest period has expired is known as: