CIMA CIMA Certifications CIMAPRO17-BA2-X1-ENG Questions & Answers

• Question 11:

  A sales manager has analysed a sample of 350 sales transactions from the latest period. The manager wishes to investigate:

  how many customers made their purchase online using the internet and how many purchased by telephone. how many were new customers and how many were placing repeat orders.

  The following table shows the results of the analysis.

  

  If the pattern of sales occurs next period, the probability of a particular sale being a repeat order placed online is closest to:

  A. 0.11

  B. 0.40

  C. 0.16

  D. 0.35

  Correct Answer: B

• Question 12:

  An organisation's management report contains the following data:

  

  Which division has the highest operating margin percentage?

  A. Division A

  B. Division B

  C. Division C

  D. Division D

  Correct Answer: C

• Question 13:

  The possible returns and associated probabilities of two independent projects are as follows:

  

  It has been decided that both projects are to be launched.

  Which TWO of the following statements are correct? (Choose two.)

  A. The expected value of the total return is $41,500 gain.

  B. The probability of the total return being a loss is 0.10.

  C. The probability of making a total return of exactly $5,000 gain is 0.02.

  D. The probability of the total return being a gain is less than 1.00.

  E. The expected value of the total return is $40,000 gain.

  Correct Answer: BD

• Question 14:

  According to CIMA's Code of Ethics, CIMA members should not allow bias, conflict of interest of the influence of other people to override their professional judgement. This is an example of:

  A. objectivity.

  B. professional behaviour.

  C. integrity.

  D. professional competence and due care.

  Correct Answer: A

  Reference http://www.cimaglobal.com/Documents/Professional%20ethics%20docs/2015%20code%20of%20ethics/CIMA_Code_of_Ethics.pdf (4)

• Question 15:

  A company uses an integrated accounting system. The following data relate to the latest period.

  

  At the end of the period, the entry in the production overhead control account in respect of under or over absorbed overheads will be:

  A. $22,672 debit.

  B. $2,208 credit.

  C. $2,208 debit.

  D. $22,672 credit.

  Correct Answer: A

• Question 16:

  Which of the following is NOT a characteristic of useful operational level information?

  A. Sufficiently accurate.

  B. Focused on the decision to be made.

  C. Available immediately.

  D. Governed by financial reporting standards.

  Correct Answer: C

• Question 17:

  An organisation produces and sells a single product. The organisation's management accountant has reported the following information for the most recent period.

  

  Which TWO of the following statements are valid? (Choose two.)

  A. If the contribution to sales ratio changed to 30%, the breakeven point would become higher.

  B. If the fixed cost changed to $445,000, the breakeven point would not change.

  C. If the sales volume changed to 220,000 units, the breakeven point would not change.

  D. If the selling price changed to $22 per unit, the breakeven point would become lower.

  E. If the variable cost changed to $16 per unit, the breakeven point would become lower.

  Correct Answer: AC

• Question 18:

  A company is appraising two projects. Both projects are for five years. Details of the two projects are as follows.

  

  Based on the above information, which of the following statements is correct?

  A. An annuity could be used to calculate the net present value of the projects.

  B. The annuity factor for project A would be lower than the annuity factor for the project B.

  C. A perpetuity could be used to calculate the net present value of the projects.

  D. The annuity factor for project A would double the annuity factor for project B.

  Correct Answer: A

• Question 19:

  The budget and actual cost statements for the production department for the latest period were as follows.

  

  Notes.

  1.

  The 10% increase in production was required to meet unexpected additional sales demand.

  2.

  The production manager is responsible for negotiating the price of materials with suppliers.

  3.

  The normal working time is 900 hours per period. Any overtime worked above these 900 hours is paid at a premium of 50%. In preparing the flexible budget for the latest period, which TWO of the following statements are correct? (Choose two.)

  A. The fixed costs should be flexed to $40,000 + 10% = $44,000.

  B. The material quantity should be flexed to 60,000 + 10% = 66,000 kg.

  C. The basic pay hours should not be flexed; they should remain at 1,000 hours.

  D. The overtime hours should be flexed to (1,000 + 10%) - 900 = 200 hours.

  E. The material price should be flexed to the actual figure of $3.10 per kg.

  Correct Answer: DE

• Question 20:

  The concept of the time value of money:

  A. recognises the fact that a cash flow received today will always be worth more than a larger cash flow received in the future.

  B. is used for making short term decisions.

  C. determines the higher interest rates that must be paid on longer term loans.

  D. recognises the fact that earlier cash flows are worth more because they can be reinvested.

  Correct Answer: A

  Reference: https://www.acowtancy.com/textbook/cat-ffm/e1-financing-concepts/e1c-concept-of-time-value-of-money/notes