Free IIA-ACCA Exam Braindumps
ACCA CIA Challenge Exam Questions 316–320 (page: 65)

Updated On: 9-Feb-2026

In an analysis of alternative credit-management policies, which of the following components will cause the net present value of receivables on credit sales to increase, if everything else remains constant?

  1. A tougher collections policy that reduces the bad debt loss ratio.
  2. A higher cost per unit sold.
  3. A longer average collection period.
  4. An increase in the cost of capital.

Answer(s): A



Which of the following budgets must be prepared first?

  1. Cash budget.
  2. Production budget.
  3. Sales budget.
  4. Selling and administrative expenses budget.

Answer(s): C



Which of the following performance measures would be appropriate for evaluating an investment center, which has responsibility for its revenues, costs, and investment base, but would not be appropriate for evaluating cost, revenue, or profit centers?

  1. A flexible budget.
  2. Variance analysis.
  3. A contribution margin income statement by segment.
  4. Residual income.

Answer(s): D



A capital investment project will have a higher net present value, everything else being equal, if it has:

  1. A higher initial investment level.
  2. A higher discount rate.
  3. Cash inflows that are larger in the later years of the life of the project.
  4. Cash inflows that are larger in the earlier years of the life of the project.

Answer(s): D



All of the following are possible explanations for a significant unfavorable material efficiency variance except:

  1. Cutbacks in preventive maintenance.
  2. An inadequately trained and supervised labor force.
  3. A large number of rush orders.
  4. Production of more units than planned for in the master budget.

Answer(s): D



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