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Question 24

Which THREE of the following are parts of the master budget? (Choose three.)

Options:

A.

Finished goods inventory budget.

B.

Budgeted statement of profit or loss.

C.

Cash flow budget.

D.

Sales budget.

E.

Administration overhead budget.

F.

Budgeted statement of financial position.

Question 25

A company is considering investing $57,000 in a machine that will last for five years, after which time it will have no value. The machine will generate additional revenue of $190,000 each year. Annual running costs, including depreciation of $11,400 will amount to $168,400.

Assuming that all cash flows occur evenly, the payback period of the investment in the machine is closest to:

Options:

A.

2 years 8 months

B.

1 year 9 months

C.

1 year 7 months

D.

2 years 6 months

Question 26

The year-to-date results at the end of month 9 included sales revenue of $3,600,000 and variable costs of $2,100,000.

During month 10, sales revenue was $450,000 and variable costs were $270,000.

What year-to-date contribution to sales ratio (C/S ratio) would be reported at the end of month 10?

Options:

A.

58,5%

B.

70,9%

C.

41,5%

D.

40,0%

Question 27

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

Options:

A.

Return on capital employed

B.

Contribution per unit

C.

Sales price variance

D.

Gross margin

Page: 6 / 14
Exam Code: BA2
Exam Name: Fundamentals of management accounting
Last Update: Dec 21, 2024
Questions: 392
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