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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 calculation of the payback period

Options:

A.

places the same value on all cash flows received over the whole life of a project.

B.

places the same value on all cash flows received during the payback period.

C.

places greater value on cash flows received in earlier years during the payback period.

D.

places greater value on cash flows received in later years during the payback period.

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Question 2

A company absorbs production overhead using a direct labour hour rate. Data for the latest period are as follows:

What is the overhead absorption rate per direct labour hour? Give your answer to one decimal place.

Options:

Question 3

A sales manager has analysed a sample of 350 sales transactions from the latest period. The manager wishes to investigate:

how many customers made their purchase online using the internet and how many purchased by telephone.

how many were new customers and how many were placing repeat orders.

The following table shows the results of the analysis.

If the pattern of sales occurs next period, the probability of a particular sale being a repeat order placed online is closest to:

Options:

A.

0.11

B.

0.40

C.

0.16

D.

0.35

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