Online Access Free BA2 Exam Questions

A tomato producer is investigating the correlation between the height of his plants and the size of the tomatoes. He has tallied up his height results and produced this table.

Using the information provided, find the median and modal class and correctly select these answers from the list.

• A.Modal class = 30<x<40
• B.Modal class = 40>x>50
• C.Median = 40<x<50
• D.Median = 30<x<40

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

• A.$53,550
• B.$10,876
• C.$50,181
• D.$51,627

A company operates a flexible budget system. A budget for direct material cost is set at £12500 for 2500 kgs of material.
It is budgeted that all materials will be obtained at a 5% discount when total production is in excess of 2700 kgs.
What variance is reported if actual material usage is 3000 kgs and the actual cost is £13500?

• A.£1250 favourable
• B.£1000 adverse
• C.£750 favourable
• D.£1500 favourable

A flexible budget is:

• A.A budget that can be flexed if the activity level is different from forecast
• B.A budget that can be flexed if unit variable costs are different from forecast
• C.A budget that can be flexed if the inflation level is different from forecast
• D.A budget that can be flexed if fixed costs are different from forecast

In investment appraisal, the internal rate of return is

• A.the rate at which the present value of a project's cash inflows is equal to the present value of its cash outflows
• B.the rate at which a project's cash inflows is equal to its cash outflows
• C.the target rate of return for all investment proposals
• D.the rate at which the present value of a project's cash inflows is zero