Free CIMA BA2 Practice Exam with Questions & Answers | Set: 8

Which of the following is not an advantage of IRR?

Refer to the exhibit.

A proposal to purchase a new packing machine contains the following estimates.

In addition it is estimated that a supervisor who is currently paid a salary of $30,000 will spend 5% of their time overseeing the operation of this machine.

The cost of capital is 16%.

The net present value (NPV) for the investment in the machine is closest to

Refer to the exhibit.

The following details were recorded for product 'Moe' for period 2:

What was the direct labor efficiency variance?

An abnormal loss in a process occurs when:

A company's output level increases but remains within the relevant range. Which ONE of the following statements is incorrect?

Refer to the exhibit.

The following extracts are taken from a company’s budgetary planning papers, showing the budgeted costs to be incurred at two activity levels:

Direct material is a wholly variable cost.

Direct labour is a semi-variable cost.

Production overhead is a step cost, with a single step at an output of 450 units.

The total budget cost allowance for an output of 480 units is:

In an integrated cost and financial accounting system, the accounting entries for PAYE deducted from gross wages would be:

An organisation produces and sells a single product. The organisation’s management accountant has reported the following information for the most recent period.

Which TWO of the following statements are valid? (Choose two.)

The possible returns and associated probabilities of two independent projects are as follows:

It has been decided that both projects are to be launched.

Which TWO of the following statements are correct? (Choose two.)

Which TWO of the following are characteristics of Management Accounts? (Choose two.)