BA2 Exam Questions Tutorials

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Question 32

A company that uses standard costing wishes to reconcile the difference between the profit for a period calculated using absorption costing with that calculated using marginal costing.

Which TWO of the following will NOT help with this reconciliation? (Choose two.)

Options:

The actual fixed production overheads.

The closing inventory.

The opening inventory.

The under or over absorbed fixed production overheads.

The fixed production overhead absorption rate.

Question 33

A company’s management accountant wishes to calculate the present value of the cost of renting a delivery vehicle. There will be five annual rental payments of $5,000, the first of which is due immediately. The company’s discount rate is 12%.

Which TWO of the following are valid ways to calculate the present value of the rental payments? (Choose two.)

Options:

$5,000 + ($5,000 x 3.605)

$5,000 + $5,000/1.12 + $5,000/(1.12)2 + $5,000/(1.12)3 + $5,000/(1.12)4

$5,000/1.12 + $5,000/(1.12)2 + $5,000/(1.12)3 + $5,000/(1.12)4+ $5,000/(1.12)5

$5,000 x 3.605

$5,000 + ($5,000 x 3.037)

Question 34

In order for the information in a management accounting report to be authoritative its contents must be:

Options:

trusted and from reliable sources.

complete and reported in a timely manner.

complete and relevant.

both financial and non-financial.

Question 35

The staffing policy for a supermarket is to have one cashier station open for every forecasted 20 customers per hour. Cashiers are hired by the hour as and when required, and do not perform any other duties.

The cost of the cashiers in relation to the number of customers would be classified as which type of cost?