Question No 28:
RS is a retailer of pet products. A dog basket that it sells has an annual demand of 15,000 units. Demand is spread evenly throughout the year.
RS pays its supplier $60 for each basket. Ordering costs are $150 per order and the annual cost of holding one basket in inventory is estimated to be $6.
The economic order quantity (EOQ) for the dog basket to the nearest unit is:
A. 612 units
B. 173 units
C. 866 units
D. 1,025 units
Answer: C
Thursday, 12 November 2015
Thursday, 5 November 2015
Cima P1 Exam Question No 27
Question No 27:
AB is preparing its cash budget for next year. The accounts receivable at the beginning of next year are expected to be $460,000. The budgeted sales are $5,400,000 and will occur evenly throughout the year. 80% of the budgeted sales will be on credit and the remainder will be cash sales. Credit customers pay in the month following sale.
The budgeted cash receipts from customers next year are:
A. $5,040,000
B. $5,410,000
C. $5,500,000
D. $4,420,000
Answer: C
AB is preparing its cash budget for next year. The accounts receivable at the beginning of next year are expected to be $460,000. The budgeted sales are $5,400,000 and will occur evenly throughout the year. 80% of the budgeted sales will be on credit and the remainder will be cash sales. Credit customers pay in the month following sale.
The budgeted cash receipts from customers next year are:
A. $5,040,000
B. $5,410,000
C. $5,500,000
D. $4,420,000
Answer: C
Thursday, 29 October 2015
Cima P1 Exam Question No 26
Question No 26:
JK has budgeted sales for next year of 24,000 units and inventory levels are expected to remain constant throughout the year. Each unit produced will require 3 labour hours and the budgeted labour rate will be $15 per hour. It is estimated that 10% of units produced will be wasted.
It is expected that 15% of the total hours worked will be paid at overtime rates. 10% of the total hours will be paid at the basic rate plus an overtime premium of 50% of the basic rate. 5% of the total hours will be paid at the basic rate plus an overtime premium of 100% of the basic rate.
The labour cost budget for next year is:
A. $ 1,350,000
B. $ 1,306,800
C. $ 1,188,000
D. $ 1,320,000
Answer: D
JK has budgeted sales for next year of 24,000 units and inventory levels are expected to remain constant throughout the year. Each unit produced will require 3 labour hours and the budgeted labour rate will be $15 per hour. It is estimated that 10% of units produced will be wasted.
It is expected that 15% of the total hours worked will be paid at overtime rates. 10% of the total hours will be paid at the basic rate plus an overtime premium of 50% of the basic rate. 5% of the total hours will be paid at the basic rate plus an overtime premium of 100% of the basic rate.
The labour cost budget for next year is:
A. $ 1,350,000
B. $ 1,306,800
C. $ 1,188,000
D. $ 1,320,000
Answer: D
Tuesday, 20 October 2015
Cima P1 Exam Question No 25
Question No 25:
The material yield variance for August is?
A. $200 Adverse
B. $1,740 Adverse
C. $200 Favourable
D. $1,740 Favourable
Answer: B
The material yield variance for August is?
A. $200 Adverse
B. $1,740 Adverse
C. $200 Favourable
D. $1,740 Favourable
Answer: B
Thursday, 15 October 2015
Cima P1 Exam Question No 24
Question No 24:
The budgeted machine set-up cost per unit of Product S is:
A. $150
B. $1.80
C. $1.50
D. $30
Answer: B
The budgeted machine set-up cost per unit of Product S is:
A. $150
B. $1.80
C. $1.50
D. $30
Answer: B
Thursday, 8 October 2015
Cima P1 Exam Question No 23
Question No 23:
A five year investment project has a positive net present value of $320,000 when discounted at the cost of capital of 10% per annum. The project includes annual net cash inflows of $100,000 which occur at the end of each of the five years.
The percentage reduction in the annual net cash inflow that would result in the project not being financially viable is:
A. 31.25%
B. 118.5%
C. 84.4%
D. 18.5%
Answer: C
A five year investment project has a positive net present value of $320,000 when discounted at the cost of capital of 10% per annum. The project includes annual net cash inflows of $100,000 which occur at the end of each of the five years.
The percentage reduction in the annual net cash inflow that would result in the project not being financially viable is:
A. 31.25%
B. 118.5%
C. 84.4%
D. 18.5%
Answer: C
Thursday, 1 October 2015
Cima P1 Exam Question No 22
Question No 22:
A company commenced business on 1 August. Total sales revenue in August was $200,000 and is expected to increase at a rate of 2% per month. Credit sales represent 60% of total sales revenue and the remaining 40% is cash sales. The credit period allowed is one month. Bad debts are expected to be 3% of credit sales but the remaining credit sales customers are expected to pay on time.The estimated receipts in September from cash and credit sales are:
A. $195,552
B. $196,400
C. $198,000
D. $201,600
Answer: C
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