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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

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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Question 2

In investment appraisal, the net present value (NPV) is

Options:

A.

The discount rate at which the project's cash inflows are equal to the cash outflows.

B.

The present value of the project's cash inflow.

C.

The difference between the present value of the project's cash inflows and the present value of the cash outflows.

D.

The difference between the present value of the project's profit and the present value of the initial investment.

Question 3

Which of the following would have an impact on the cash budget?

(a) Change in payables terms

(b) Change in the rate of depreciation

(c) Change in the percentage discount allowed

(d) Change of inventory holding policy

Options:

A.

None of the above

B.

(a), (b) and (c)

C.

(a), (c) and (d)

D.

All of the above

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