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

• Question 31:

  The International Federation of Accountants (IFAC) stated that it was important that "accountants in business" should understand what the drivers of stakeholder value are. Which of the following statements is valid?

  A. Anyone with an interest in an organisation can be considered to be one of its stakeholders.

  B. Stakeholders must be external to the organisation.

  C. Only an organisation's shareholders and employees can be considered to be its stakeholders.

  D. Only an organisation's shareholders can be considered to be its stakeholders.

  Correct Answer: D

• Question 32:

  A company operates an integrated standard cost accounting system. The standard price of raw material A is $20 per litre. At the start of period 1, the inventory of 500 litres of raw material A was valued at $20 per litre. During period 1, 100 litres of raw material A were purchased at an actual price of $21 per litre. During period 2, 550 litres of raw material A were issued to Job 789.

  In respect of the above events, which TWO of the following statements are correct? (Choose two.)

  A. The raw material inventory at the end of period 1 should include 100 litres valued at $21 per litre.

  B. An adverse material price variance should be recorded in the statement of profit or loss for period 1.

  C. The raw material inventory at the end of period 2 should be valued at $20 per litre.

  D. An adverse material price variance should be recorded in the statement of profit or loss for period 2.

  E. The first 500 litres of raw material A issued should be debited to the Job 789 account at $20 per litre, and the remaining 50 litres at $21 per litre.

  Correct Answer: DE

• Question 33:

  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 sales volume contribution variance for the period was:

  A. $6,220 adverse.

  B. $9,267 adverse.

  C. $16,000 adverse.

  D. $5,666 adverse.

  Correct Answer: D

• Question 34:

  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.

  Correct Answer: B

• Question 35:

  A project is about to be launched. Two of the three possible outcomes and their associated probabilities are as follows:

  

  The remaining possible outcome is a $70,000 gain.

  What is the correct calculation of the expected value of the project?

  A. ($30,000 + $70,000 - $25,000) / 3

  B. ($30,000 + $70,000 - $25,000) x (0.7 + (1.0 - (0.2 + 0.7)) + 0.2)

  C. ($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) + ($25,000 x 0.2)

  D. ($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) - ($25,000 x 0.2)

  Correct Answer: A

• Question 36:

  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.

  Correct Answer: C

• Question 37:

  Which of the following is a valid definition of a cash budget?

  A. A detailed budget of estimated cash inflows and outflows incorporating both revenue and capital items.

  B. A detailed budget of estimated cash inflows only, incorporating receipts from cash sales as well as from credit customers.

  C. A detailed budget of estimated cash inflows and outflows incorporating revenue items only.

  D. A detailed budget of estimated cash outflows only, incorporating both depreciation and capital expenditure.

  Correct Answer: C

  Reference: https://www.acowtancy.com/textbook/acca-ma/d2-budget-preparation/cash-budgets/notes

• Question 38:

  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. 5.82%

  B. 73.89%

  C. 44.18%

  D. 94.18%

  Correct Answer: D

• Question 39:

  A new product requires an investment of $200,000 in machinery and working capital. The total sales volume over the product's life will be 5,000 units. The forecast costs per unit throughout the product's life are as follows:

  

  The product is required to earn a return on investment of 35%. What unit selling price needs to be achieved?

  A. $54.00

  B. $50.77

  C. $47.00

  D. $44.55

  Correct Answer: D

• Question 40:

  The following is an extract from a budgetary control report for the latest period:

  

  The budget variance for prime cost is:

  A. $3,260 adverse

  B. $18,580 adverse

  C. $3,340 adverse

  D. $3,260 favourable

  Correct Answer: B