Question No 22:
RS is currently preparing the production budget for Product A and the material purchase budget for material X for the forthcoming year. Each unit of Product A requires 5 kgs of material X.
The anticipated opening inventory for Product A is 5,000 units and the company wishes to increase the closing inventory by 30% by the end of the year.
The anticipated opening inventory for material X is 50,000 kgs and in order to avoid stock outs the required closing inventory has been increased to 60,000 kgs.
The Sales Director has confirmed a sales requirement of 70,000 units of Product A. What will be the purchases budget for material X?
A. 347,500 kgs
B. 350,000 kgs
C. 357,500 kgs
D. 367,500 kgs
Answer: D
Thursday, 27 August 2015
Thursday, 20 August 2015
Cima C01 Exam Question No 21
Question No 21:
RS is currently preparing the production budget for Product A and the material purchase budget for material X for the forthcoming year. Each unit of Product A requires 5 kgs of material X.
The anticipated opening inventory for Product A is 5,000 units and the company wishes to increase the closing inventory by 30% by the end of the year.
The anticipated opening inventory for material X is 50,000 kgs and in order to avoid stock outs the required closing inventory has been increased to 60,000 kgs.
The Sales Director has confirmed a sales requirement of 70,000 units of Product A.
How many units of Product A will need to be produced?
A. 68,500 units
B. 71,500 units
C. 76,500 units
D. 80,000 units
Answer: B
RS is currently preparing the production budget for Product A and the material purchase budget for material X for the forthcoming year. Each unit of Product A requires 5 kgs of material X.
The anticipated opening inventory for Product A is 5,000 units and the company wishes to increase the closing inventory by 30% by the end of the year.
The anticipated opening inventory for material X is 50,000 kgs and in order to avoid stock outs the required closing inventory has been increased to 60,000 kgs.
The Sales Director has confirmed a sales requirement of 70,000 units of Product A.
How many units of Product A will need to be produced?
A. 68,500 units
B. 71,500 units
C. 76,500 units
D. 80,000 units
Answer: B
Wednesday, 12 August 2015
Cima C01 Exam Question No 20
Question No 20:
The term “budget slack” refers to the
A. Extended lead time between the preparation of the functional budgets and the master budget.
B. Difference between the budgeted output and the break even output.
C. Additional capacity available which can be budgeted for.
D. Deliberate over-estimation of costs and under-estimation of revenues in a budget.
Answer: D
The term “budget slack” refers to the
A. Extended lead time between the preparation of the functional budgets and the master budget.
B. Difference between the budgeted output and the break even output.
C. Additional capacity available which can be budgeted for.
D. Deliberate over-estimation of costs and under-estimation of revenues in a budget.
Answer: D
Thursday, 6 August 2015
Cima C01 Exam Question No 19
Question No 19:
The following extract is taken from the overhead budget of X:
Budgeted activity 50% 75%
Budgeted overhead $100,000 $112,500
The overhead budget for an activity level of 80% would be
A. $115,000
B. $120,000
C. $136,000
D. $160,000
Answer: A
The following extract is taken from the overhead budget of X:
Budgeted activity 50% 75%
Budgeted overhead $100,000 $112,500
The overhead budget for an activity level of 80% would be
A. $115,000
B. $120,000
C. $136,000
D. $160,000
Answer: A
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