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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

In investment appraisal, the internal rate of return is

Options:

A.

the target rate of return for all investment proposals

B.

the rate at which a project’s cash inflows is equal to its cash outflows

C.

the rate at which the present value of a project’s cash inflows is zero

D.

the rate at which the present value of a project’s cash inflows is equal to the present value of its cash outflows

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Question 2

A product sells for £10 per unit and has an annual break-even volume of 50,000 units. The annual fixed costs are £100,000.

The variable cost per unit is:

Give your answer to 2 decimal places.

Options:

Question 3

The materials price variance will be adverse when:

Options:

A.

The actual cost of the materials is more than the standard material cost for the output produced

B.

The actual cost of the materials purchased is more than the standard cost of the materials purchased

C.

The materials usage variance is favourable

D.

The price of materials has fallen

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