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BA2 Exam Dumps : Fundamentals of Management Accounting

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Fundamentals of Management Accounting Questions and Answers

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Question 1

Which of the following is the LEAST appropriate basis on which to apportion the insurance costs of plant and machinery:

Options:

A.

Machine hours

B.

Net book value

C.

Original cost

D.

Replacement cost

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Question 2

The possible returns and associated probabilities of two independent projects are as follows:

It has been decided that both projects are to be launched.

Which TWO of the following statements are correct? (Choose two.)

Options:

A.

The expected value of the total return is $41,500 gain.

B.

The probability of the total return being a loss is 0.10.

C.

The probability of making a total return of exactly $5,000 gain is 0.02.

D.

The probability of the total return being a gain is less than 1.00.

E.

The expected value of the total return is $40,000 gain.

Question 3

A company hires a delivery vehicle for $200 per day plus $2 per kilometre travelled. The total hire cost would be described as:

Options:

A.

a fixed cost

B.

a variable cost

C.

a step cost

D.

a semi-variable cost

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