Free CIMA CIMAPRO17-BA2-X1-ENG Exam Dumps Questions & Answers

A company is considering investing $57,000 in a machine that will last for five years, after which time it will have no value. The machine will generate additional revenue of $190,000 each year. Annual running costs, including depreciation of $11,400 will amount to $168,400.
Assuming that all cash flows occur evenly, the payback period of the investment in the machine is closest to:

• A.2 years 6 months
• B.1 year 7 months
• C.1 year 9 months
• D.2 years 8 months

In order for the information in a management accounting report to be authoritative its contents must be:

• A.complete and relevant.
• B.trusted and from reliable sources.
• C.both financial and non-financial.
• D.complete and reported in a timely manner.

Which of the following statements relating to risk and uncertainty is correct?

• A.Risk exists when we do not know all of the possible outcomes.
• B.Risk exists when we know all of the possible outcomes but not their probabilities.
• C.Uncertainty exists when we know all of the possible outcomes but not their probabilities.
• D.Uncertainty exists when we know all of the possible outcomes and their probabilities.

In a company that manufactures many different products on the same production line, which TWO of the following would NOT be classified as indirect production costs? (Choose two.)

• A.Maintenance costs for the company's only production line.
• B.Commissions paid to the sales team.
• C.Royalties paid to the designers of the products.
• D.Salary paid to the factory manager.
• E.Factory rent.

Data for the latest period for a company which makes and sells a single product are as follows:

There were no budgeted or actual changes in inventories during the period.
The variable overhead expenditure variance for the period was:

• A.$462 favourable.
• B.$462 adverse.
• C.$2,202 favourable.
• D.$2,202 adverse.