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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

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.

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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

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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