Cima P1 Exam Question No 33

Question No 33:

The economic order quantity (EOQ) for this model of calculator will be:

A. 2,438 units
B. 771 units
C. 67 units
D. 2,060 units

Answer: A

Cima P1 Exam Question No 32

Question No 32:

FP has decided not to use the EOQ and has decided to order 2,600 calculators each time an order is placed. The total ordering and holding costs per annum will be?

A. $5,240
B. $19,800
C. $208,014
D. $3,420

Answer: C

Cima P1 Exam Question No 31

Question No 31:

The term ‘budgetary slack’ refers to the?

A. Lead time between the preparation of the functional budgets and the approval of the master budget by senior management
B. Difference between the budgeted output and the actual output
C. Difference between budgeted capacity utilisation and full capacity
D. Intentional over estimation of costs and/or under estimation of revenue in a budget

Answer: D