Online Access Free CIMAPRO17-BA2-X1-ENG Exam Questions

A company produces a single product for which the following cost data are available.

Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs.
What is the marginal cost per unit?

• A.$7
• B.$8
• C.$6
• D.$9

Based upon extensive historical evidence, a company's daily sales volume is known to be normally distributed with a mean of 1,728 units and a standard deviation of 273 units.
What is the probability that, on any one day, the sales volume will be at least 1,300 units?

• A.73.89%
• B.94.18%
• C.5.82%
• D.44.18%

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

• A.Deciding to make a long-term investment in a project on the basis of its payback period.
• B.Taking a long-term investment decision on the basis of the project's internal rate of return (IRR).
• C.Calculating the present value of a five-year annuity.
• D.Selecting an investment project on the basis that it has a positive net present value (NPV).

A company has spent $5,000 on a report into the viability of using a subcontractor. The report highlighted the following:
A machine purchased six years ago for $30,000 would become surplus to requirements. It has a written- down value of $10,000 but would be resold for $12,000.
A machine operator would be made redundant and would receive a redundancy payment of $40,000.
The administration of the subcontractor arrangement would cost the company $25,000 each year.
Which THREE of the following are relevant for the decision? (Choose three.)

• A.A relevant cost of $5,000 for the viability report.
• B.A relevant cost of $25,000 each year for administration.
• C.A relevant cost of $40,000 for the redundancy payment.
• D.A relevant cost of $30,000 for the machine.
• E.A relevant revenue of $12,000 for the machine.
• F.A relevant cost of $10,000 for the machine.

FILL BLANK
The following data are available for a delivery company. The table shows the number of tonnes delivered (x) and the associated distribution cist (y) in recent periods.

Further analysis of this data has determined the following:
∑xy = 36,427 ∑x2 = 1,144
Using least squares regression analysis, calculate the variable cost per tonne delivered. Give your answer to the nearest cent.