Cima certkiller cima Certificate Ba2 Syllabus Exam Questions Answers by Archibald q306 vce pdf

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Exam Name:	Fundamentals of management accounting
Exam Code:	BA2 Dumps
Vendor:	CIMA	Certification:	CIMA Certificate
Questions:	392 Q&A's	Shared By:	archibald

Question 24

The budget and actual cost statements for the production department for the latest period were as follows.

Questions 24

Notes.

The 10% increase in production was required to meet unexpected additional sales demand.

The production manager is responsible for negotiating the price of materials with suppliers.

The normal working time is 900 hours per period. Any overtime worked above these 900 hours is paid at a premium of 50%.

In preparing the flexible budget for the latest period, which TWO of the following statements are correct? (Choose two.)

Options:

The fixed costs should be flexed to $40,000 + 10% = $44,000.

The material quantity should be flexed to 60,000 + 10% = 66,000 kg.

The basic pay hours should not be flexed; they should remain at 1,000 hours.

The overtime hours should be flexed to (1,000 + 10%) - 900 = 200 hours.

The material price should be flexed to the actual figure of $3.10 per kg.

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Question 25

Which of the following would NOT require taking into account the time value of money?

Options:

Deciding to make a long-term investment in a project on the basis of its payback period.

Selecting an investment project on the basis that it has a positive net present value (NPV).

Calculating the present value of a five-year annuity.

Taking a long-term investment decision on the basis of the project’s internal rate of return (IRR).