Free CIMA BA2 Practice Exam with Questions & Answers | Set: 7

Which THREE of the following statements could explain why an adverse material price variance has arisen?

In an integrated accounting system, the accounting entries for over absorption of production overheads would be.

Refer to the exhibit.

ZAP publishes a monthly magazine aimed at the teenage market. It has drawn up a budget for next year as follows:

The magazine is currently sold at $2.00 per copy.

The margin of safety is

In the context of short term decision making, what is a notional cost?

A company has produced its cash budget for the year and is concerned at the level of the cash deficit being shown. Which THREE of the following would enable the company to reduce its cash deficit in the short term?

Refer to the exhibit.

JB Limited pays 60% of invoices for goods purchased on credit, in the month after purchase. The remaining 40% are paid a month later.

Invoices are received on the last day of each month. Invoices paid in the month following purchase attract a prompt payment discount of 2%, whilst those paid in the second month attract only a 1% discount.

Credit purchases for April to June are budgeted as follows:

The amount budgeted to be paid for credit purchases in June is:

In an integrated cost and financial accounting system, the accounting entries for charging gross direct wages to production would be:

The standard material content of 1 unit of PAJ is £200 (8Kg at £25 per Kg).

During Period 5, 1300 Kg of materials were purchased at a total cost of £35500 and were used to produce 160 units of PAJ.

What was the materials usage variance for Period 5?

During Period 8, 120kgs of material 'X' was purchased for a total cost of £1,920. This resulted in a materials price variance of £240 adverse.

What was the standard price per kg of Material 'X'?

If fixed costs are increased, the gradient of the line plotted on a profit/volume (PV) graph will be: