CIMA Related Exams
P2 Exam
The money cost of capital is 12%. The expected rate of inflation is 4%. What is the real cost of capital?
Give your answer to 2 decimal places.
An organization wants to increase the use value that customers place on one of its products - a laptop computer.
Which of the following actions, taken to increase the value to the customer, would increase the product's use value?
Select ALL that apply.
An investment centre manager is considering the purchase of a new machine. If purchased, the new machine would replace an existing one that is used to manufacture one of the investment centre's existing products.
The new machine would incur $800 per month additional running costs; this includes $300 per month of additional depreciation.
The new machine would save on direct labor time. This means that the fixed production overhead absorbed by the product on the basis of direct labor hours would reduce by $100 per month.
What is the total cost of the above that is relevant to the decision to purchase the machine?