Free BA2 Exam Braindumps (page: 23)

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CORRECT TEXT

Refer to the exhibit.



A company is considering purchasing a machine that will have a useful life of three years after which time it will be sold. Relevant cash flows relating to the purchase and operation of the machine are as follows.

The annual cost of capital is 14%.

The net present value of the investment in the machine is, to the nearest whole $:

  1. $87625

Answer(s): A



Refer to the exhibit.



The budget for ORG for the month of September contained the following data:

During the month the actual number of units produced was 1,550. The management accounts showed a direct labour rate variance of $200 adverse and direct labour efficiency variance of $150 adverse.

The actual direct labour hours in the month was:

  1. 1,312.5 hours
  2. 1,125 hours
  3. 1,200 hours
  4. 1,012.5 hours

Answer(s): C



Which one of the following is an example of operational management information?

  1. The annual cash budget
  2. An investment appraisal report
  3. A production schedule for tomorrow
  4. A flexible budget control report for last month

Answer(s): C



It is company policy that the closing inventory of finished goods must be equal to 10% of
the following month's budgeted sales. The budget sales for November and December are 8,000 and 9,000 units respectively.

The budgeted production for November will be:

  1. 900 units
  2. 1,700 units
  3. 8,100 units
  4. 8,900 units

Answer(s): C



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@MaBlerh commented on June 02, 2024
Good exam simulation questions
Anonymous
upvote