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

• Question 51:

  A small airport's management accountant has prepared the following management report on the performance of its four retail outlets.

  

  Which retail outlet has the highest contribution per square metre?

  A. Outlet A

  B. Outlet B

  C. Outlet C

  D. Outlet D

  Correct Answer: C

• Question 52:

  Which of the following is a relevant cost?

  A. A sunk cost

  B. A committed cost

  C. An incremental cost

  D. A historical cost

  Correct Answer: C

  Reference: https://www.acowtancy.com/textbook/cima-p1-2015/c1-relevant-costing/concept-of-relevant-costing/notes

• Question 53:

  Which of the following would NOT be an appropriate performance measure for a profit centre manager?

  A. Return on capital employed

  B. Contribution per unit

  C. Sales price variance

  D. Gross margin

  Correct Answer: B

• Question 54:

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  A company wishes to compare the variability of its monthly sales revenue in country A with that of country B. The two countries use different currencies.

  The monthly sales revenue for the last 48 months in country A (which is measured in $) has been analysed as follows.

  

  What is the coefficient of variation of this data?

  Give your answer as a percentage to one decimal place.

  A. 0.143

  Correct Answer: A

  Reference: https://www.statisticshowto.datasciencecentral.com/probability-and-statistics/how-to-find-a-coefficient-of-variation/

• Question 55:

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  A company absorbs production overhead using a direct labour hour rate. Data for the latest period are as follows:

  

  What is the overhead absorption rate per direct labour hour? Give your answer to one decimal place.

  A. 5.4

  Correct Answer: A

• Question 56:

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  The records of a manufacturing company show the following relationship between total cost and output.

  

  The budgeted output for Period 3 is 27,000 units. Assume that previous cost behaviour patterns will continue.

  What is the total budgeted cost for Period 3?

  Give your answer in the nearest whole number.

  A. 431000

  Correct Answer: A

• Question 57:

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  The following data are available for a delivery company. The table shows the number of tonnes delivered (x) and the associated distribution cist (y) in recent periods.

  

  Further analysis of this data has determined the following: xy = 36,427 x2 = 1,144

  Using least squares regression analysis, calculate the variable cost per tonne delivered. Give your answer to the nearest cent.

  A. -128.10

  Correct Answer: A

• Question 58:

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  A company uses full cost pricing. The unit costs for product Z are given below.

  

  What price per unit should be charged in order to achieve a profit margin of 20%? Give your answer to the nearest cent.

  A. $25

  Correct Answer: A

• Question 59:

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  A company has three production departments X, Y and Z, and one service department.

  The service department's overhead has been apportioned to the production departments in the ratio 3:2:5. As a result of this apportionment, $2,070 was given to Department Y.

  What is the amount of service department overhead that would have been apportioned to Department Z? Give your answer to the nearest dollar.

  A. $5,175

  Correct Answer: A

• Question 60:

  DRAG DROP

  A company manufactures three products using the same direct labour which will be in short supply next month. No inventories are held. Data for the three products are as follows:

  

  The fixed costs are all committed costs and cannot now be altered for the next month.

  Place the labels against the correct product to indicate the order of priority for manufacture that will maximise the profit for the next month.

  Select and Place:

  

  Correct Answer: