Cima C01 Exam Question No 44

Question No 44:

The incomplete process account relating to period 4 for a company which manufactures paper is shown below:
 

 There was no opening work in process (WIP). Closing WIP, consisting of 700 units, was complete as shown:

Material 100%
Labour 50%
Production overhead 40%

Losses are recognised at the end of the production process and are sold for $1.75 per unit.
The total value of the units transferred to finished goods was

A. $21,052.50
B. $21,587.50
C. $22,122.50
D. $22,656.50

Answer:  B

Cima C01 Exam Question No 43

Question No 43:

The following data have been collected for four cost types; W, X, Y, and Z at two activity levels?
 

Where V = variable, SV = semi-variable and F = fixed, assuming linearity, the four cost types W, X, Y and Z are respectively

 Answer: B

Cima C01 Exam Question No 42

Question No 42:

XYZ operates an integrated accounting system. The material control account at 31 March 2011 shows the following information?
 

 The $125,000 credit entry represents the value of the transfer to the


A. Cost of sales account
B. Finished goods account
C. Profit and loss account
D. Work-in-progress account

Answer: D

Cima C01 Exam Question No 41

Question No 41:

Which THREE of the following statements are advantages of the internal rate of return (IRR) method of investment appraisal?

A. It is a measure of absolute profitability
B. It considers the time value of money
C. It is an easy to understand percentage measure
D. It is based on accounting profits
E. It considers the whole life of a project
F. It is a simple measure of risk

Answer: B, C, E