Refer to the exhibit.
A proposal to purchase a new packing machine contains the following estimates.
In addition it is estimated that a supervisor who is currently paid a salary of $30,000 will spend 5% of their time overseeing the operation of this machine.
The cost of capital is 16%.
The net present value (NPV) for the investment in the machine is closest to
Refer to the exhibit.
A company has the following budget information for next year:
The budgeted profit for the year is
Refer to the exhibit.
A company issued its production budget based on an anticipated output of 800 units. Actual output was 1000 units. The details of the costs are shown below:
The budget expenditure variance was:
Refer to the Exhibit.
CM has produced the following budget information for next year:
The opening receivables balance represents 2 months sales. It is expected that the same level of sales will continue at an even rate throughout the year.
In an effort to improve receivables collection periods it is proposed to offer a discount of 5% for payment by cash. It is expected that 20% of customers will pay by cash. Of the remaining 80% credit sales, 40% will be settled within 1 month and 60% are expected to settle within 2 months.
What are the budgeted cash receipts from cash and credit sales in the year?
Refer to the Exhibit.
The following details have been extracted from the receivables collection records of SBC:
The amount budgeted to be received in September from credit sales is, to the nearest £000:
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?
The wages of a machine operator who is paid a guaranteed minimum wage plus a bonus for each unit produced would be described as A.
Refer to the Exhibit.
The following budgetary information is available for a department in a manufacturing company:
The production overhead absorption rate percentage, when the percentage on prime cost is used, is:
SP Limited operates an absorption costing system. It uses a predetermined overhead absorption rate based on machine hours. Budgeted factory overheads for the year were £1,080,000 but actual overhead incurred was £1,046,000. Budgeted machine hours were 120,000 and actual machine hours were 119,000.
Overheads for the period were.
TESTED 22 Feb 2025
