CIMA CIMAPRA17-BA2-1 Quiz 1 Topic 1 Questions 1-5

Question: 1

Which of the following would NOT require taking into account the time value of money?

ADeciding to make a long-term investment in a project on the basis of its payback period.

BSelecting an investment project on the basis that it has a positive net present value (NPV).

CCalculating the present value of a five-year annuity.

DTaking a long-term investment decision on the basis of the project's internal rate of return (IRR).

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Question: 2

The variable overhead expenditure variance is:

AThe over or under absorbed variable overhead

BThe difference between the actual hours worked and the standard hours produced, multiplied by the variable overhead absorption rate

CThe actual hours worked multiplied by the variable absorption rate

DThe difference between the variable overheads incurred and the flexed budget allowance for variable overheads

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Question: 3

A service company provides accountancy training courses. Which THREE of the following would be classified as variable costs of the company?

AHire of conference rooms

BOffice rental

CLecturers' fees (Lecturers are paid a flat rate per day)

DAdvertising (The company runs specific adverts for each course)

EDepreciation of office machinery

FCourse manager's salary

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Question: 4

Refer to the exhibit.

q4_CIMAPRA17-BA2-1

Xpert Ltd uses a standard costing system and therefore values all inventory at standard cost. During period 7, the price paid for material 'Z' was 2 per kg more than the standard price.

The following information for material 'Z' relates to period 7:

What was the material price variance for 'Z' in period 7?

A2 adverse

B40 adverse

C400 adverse

D500 adverse

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Question: 5

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?

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

BStakeholders must be external to the organisation.

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

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

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CIMA CIMAPRA17-BA2-1 Quiz:1 Topic:1 Questions:1-5