{"id":3588,"date":"2019-05-10T01:54:12","date_gmt":"2019-05-10T01:54:12","guid":{"rendered":"https:\/\/www.dumpsbase.com\/freedumps\/?p=3588"},"modified":"2019-05-10T01:55:57","modified_gmt":"2019-05-10T01:55:57","slug":"cima-certified-cimapro15-p01-x1-eng-free-dumps","status":"publish","type":"post","link":"https:\/\/www.dumpsbase.com\/freedumps\/cima-certified-cimapro15-p01-x1-eng-free-dumps.html","title":{"rendered":"CIMA Certified CIMAPRO15-P01-X1-ENG Free Dumps"},"content":{"rendered":"\n<p>As a hot exam of CIMA certified, CIMAPRO15-P01-X1-ENG P1 &#8211; Management Accounting Question Tutorial exam provides candidates with a demonstration of the online test environment and functionality. We released CIMAPRO15-P01-X1-ENG online dumps to help you complete your CIMA CIMAPRO15-P01-X1-ENG exam smoothly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Online CIMA Certified CIMAPRO15-P01-X1-ENG Free Dumps<\/h2>\n\n\n\n<script>\n\t  window.fbAsyncInit = function() {\n\t    FB.init({\n\t      appId            : '622169541470367',\n\t      autoLogAppEvents : true,\n\t      xfbml            : true,\n\t      version          : 'v3.1'\n\t    });\n\t  };\n\t\n\t  (function(d, s, id){\n\t     var js, fjs = d.getElementsByTagName(s)[0];\n\t     if (d.getElementById(id)) {return;}\n\t     js = d.createElement(s); js.id = id;\n\t     js.src = \"https:\/\/connect.facebook.net\/en_US\/sdk.js\";\n\t     fjs.parentNode.insertBefore(js, fjs);\n\t   }(document, 'script', 'facebook-jssdk'));\n\t<\/script><script type=\"text\/javascript\" >\ndocument.addEventListener(\"DOMContentLoaded\", function(event) { \nif(!window.jQuery) alert(\"The important jQuery library is not properly loaded in your site. Your WordPress theme is probably missing the essential wp_head() call. You can switch to another theme and you will see that the plugin works fine and this notice disappears. If you are still not sure what to do you can contact us for help.\");\n});\n<\/script>  \n  \n<div  id=\"watupro_quiz\" class=\"quiz-area single-page-quiz\">\n<p id=\"submittingExam959\" style=\"display:none;text-align:center;\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/plugins\/watupro\/img\/loading.gif\" width=\"16\" height=\"16\"><\/p>\n\n<div class=\"watupro-exam-description\" id=\"description-quiz-959\"><\/div>\n\n<form action=\"\" method=\"post\" class=\"quiz-form\" id=\"quiz-959\"  enctype=\"multipart\/form-data\" >\n<div class='watu-question ' id='question-1' style=';'><div id='questionWrap-1'  class='   watupro-question-id-28695'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>1. <\/span>A company is preparing its annual budget and is estimating the number of units of Product A that it will sell in each quarter of year 2. <br \/>\r<br>Past experience has shown that the trend for sales of the product is represented by the following relationship: <br \/>\r<br>y = a + bx where <br \/>\r<br>y = number of sales units in the quarter a = 10,000 units b = 3,000 units x = the quarter number where 1 = quarter 1 of year 1 <br \/>\r<br>Actual sales of Product A in Year 1 were affected by seasonal variations and were as follows: <br \/>\r<br>Quarter 1:14,000 units Quarter2: 18,000 units Quarter 3: 18,000 units Quarter 4: 20,000 units Calculate the expected sales of Product A (in units) for each quarter of year 2, after adjusting for seasonal <br \/>\r<br>variations using the additive model.<\/div><input type='hidden' name='question_id[]' id='qID_1' value='28695' \/><input type='hidden' id='answerType28695' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28695[]' id='answer-id-118162' class='answer   answerof-28695 ' value='118162'   \/><label for='answer-id-118162' id='answer-label-118162' class=' answer'><span>The expected sales for year 2 Quarter 4 was 32700 units<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28695[]' id='answer-id-118163' class='answer   answerof-28695 ' value='118163'   \/><label for='answer-id-118163' id='answer-label-118163' class=' answer'><span>The expected sales for year 2 Quarter 4 was 32000 units<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28695[]' id='answer-id-118164' class='answer   answerof-28695 ' value='118164'   \/><label for='answer-id-118164' id='answer-label-118164' class=' answer'><span>The expected sales for year 2 Quarter 4 was 33000 units<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28695[]' id='answer-id-118165' class='answer   answerof-28695 ' value='118165'   \/><label for='answer-id-118165' id='answer-label-118165' class=' answer'><span>The expected sales for year 2 Quarter 4 was 40000 units<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-2' style=';'><div id='questionWrap-2'  class='   watupro-question-id-28696'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>2. <\/span>RT produces two products from different quantities of the same resources using a just-in-time (JIT) production system. <br \/>\r<br>The selling price and resource requirements of each of the products are shown below: <br \/>\r<br><br><img decoding=\"async\" width=427 height=192 src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2018\/exams\/CIMAPRO15-P01-X1-ENG%20V8.files\/image002.jpg\" v:shapes=\"_x0000_i1025\"><br><br \/>\r<br>Market research shows that the maximum demand for products R and T during June 2010 is 500 units and 800 units respectively. This does not include an order that RT has agreed with a commercial customer for the supply of 250 units of R and 350 units of T at selling prices of $100 and $135 per unit respectively.  Although the customer will accept part of the order, failure by RT to deliver the order in full by the end of June will cause RT to incur a $10,000 financial penalty. <br \/>\r<br>At a recent meeting of the purchasing and production managers to discuss the production plans of RT for June, the following resource restrictions for June were identified: <br \/>\r<br>Direct labour hours 7,500 hours <br \/>\r<br>Material A 8,500 kgs <br \/>\r<br>Material B 3,000 litres <br \/>\r<br>Machine hours 7,500 hours <br \/>\r<br>Assuming that RT completes the order with the commercial customer, prepare calculations to show, from a financial perspective, the optimum production plan for June 2010 and the contribution that would result from adopting this plan. <br \/>\r<br>The optimum production plan will be:<\/div><input type='hidden' name='question_id[]' id='qID_2' value='28696' \/><input type='hidden' id='answerType28696' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28696[]' id='answer-id-118166' class='answer   answerof-28696 ' value='118166'   \/><label for='answer-id-118166' id='answer-label-118166' class=' answer'><span>Contract: R = 250, T = 360 and Market: R = 500 T = 710<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28696[]' id='answer-id-118167' class='answer   answerof-28696 ' value='118167'   \/><label for='answer-id-118167' id='answer-label-118167' class=' answer'><span>Contract: R = 250, T = 360 and Market: R = 600 T = 710<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28696[]' id='answer-id-118168' class='answer   answerof-28696 ' value='118168'   \/><label for='answer-id-118168' id='answer-label-118168' class=' answer'><span>Contract: R = 250, T = 360 and Market: R = 650 T = 710<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28696[]' id='answer-id-118169' class='answer   answerof-28696 ' value='118169'   \/><label for='answer-id-118169' id='answer-label-118169' class=' answer'><span>Contract: R = 250, T = 360 and Market: R = 500 T = 700<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28696[]' id='answer-id-118170' class='answer   answerof-28696 ' value='118170'   \/><label for='answer-id-118170' id='answer-label-118170' class=' answer'><span>Contract: R = 250, T = 360 and Market: R = 660 T = 720<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-3' style=';'><div id='questionWrap-3'  class='   watupro-question-id-28697'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>3. <\/span>RT produces two products from different quantities of the same resources using a just-in-time (JIT) production system. <br \/>\r<br>The selling price and resource requirements of each of the products are shown below: <br \/>\r<br><br><img decoding=\"async\" width=427 height=192 src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2018\/exams\/CIMAPRO15-P01-X1-ENG%20V8.files\/image002.jpg\" v:shapes=\"_x0000_i1026\"><br><br \/>\r<br>Market research shows that the maximum demand for products R and T during June 2010 is 500 units and 800 units respectively. This does not include an order that RT has agreed with a commercial customer for the supply of 250 units of R and 350 units of T at selling prices of $100 and $135 per unit respectively. Although the customer will accept part of the order, failure by RT to deliver the order in full by the end of June will cause RT to incur a $10,000 financial penalty. <br \/>\r<br>At a recent meeting of the purchasing and production managers to discuss the production plans of RT for June, the following resource restrictions for June were identified: <br \/>\r<br>Direct labour hours 7,500 hours <br \/>\r<br>Material A 8,500 kgs <br \/>\r<br>Material B 3,000 litres <br \/>\r<br>Machine hours 7,500 hours <br \/>\r<br>Assuming that RT completes the order with the commercial customer, prepare calculations to show, from a financial perspective, the optimum production plan for June 2010 and the contribution that would result from adopting this plan. <br \/>\r<br>The contribution per unit for R and T will be...?<\/div><input type='hidden' name='question_id[]' id='qID_3' value='28697' \/><input type='hidden' id='answerType28697' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28697[]' id='answer-id-118171' class='answer   answerof-28697 ' value='118171'   \/><label for='answer-id-118171' id='answer-label-118171' class=' answer'><span>R = $47 per unit. T = $61 per unit<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28697[]' id='answer-id-118172' class='answer   answerof-28697 ' value='118172'   \/><label for='answer-id-118172' id='answer-label-118172' class=' answer'><span>R = $51 per unit. T = $61 per unit<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28697[]' id='answer-id-118173' class='answer   answerof-28697 ' value='118173'   \/><label for='answer-id-118173' id='answer-label-118173' class=' answer'><span>R = $47 per unit. T = $65 per unit<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28697[]' id='answer-id-118174' class='answer   answerof-28697 ' value='118174'   \/><label for='answer-id-118174' id='answer-label-118174' class=' answer'><span>R = $45 per unit. T = $66 per unit<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-4' style=';'><div id='questionWrap-4'  class='   watupro-question-id-28698'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>4. <\/span>RT produces two products from different quantities of the same resources using a just-in-time (JIT) production system. <br \/>\r<br>The selling price and resource requirements of each of the products are shown below: <br \/>\r<br><br><img decoding=\"async\" width=427 height=192 src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2018\/exams\/CIMAPRO15-P01-X1-ENG%20V8.files\/image002.jpg\" v:shapes=\"_x0000_i1027\"><br><br \/>\r<br>Market research shows that the maximum demand for products R and T during June 2010 is 500 units and 800 units respectively. This does not include an order that RT has agreed with a commercial customer for the supply of 250 units of R and 350 units of T at selling prices of $100 and $135 per unit respectively.  Although the customer will accept part of the order, failure by RT to deliver the order in full by the end of June will cause RT to incur a $10,000 financial penalty. <br \/>\r<br>At a recent meeting of the purchasing and production managers to discuss the production plans of RT for June, the following resource restrictions for June were identified: <br \/>\r<br>Direct labour hours 7,500 hours <br \/>\r<br>Material A 8,500 kgs <br \/>\r<br>Material B 3,000 litres <br \/>\r<br>Machine hours 7,500 hours <br \/>\r<br>(Refer to previous 2 questions.) <br \/>\r<br>You have now presented your optimum production plan to the purchasing and production managers of RT. During your presentation it became clear that the predicted resource restrictions were rather optimistic. In fact, the managers agreed that the availability of all of the resources could be as much as 10% lower than their original predictions. <br \/>\r<br>Assuming that RT completes the order with the commercial customer, and using linear programming, show the optimum production plan for RT for June 2010 on the basis that the availability of all resources is 10% lower than originally predicted.<\/div><input type='hidden' name='question_id[]' id='qID_4' value='28698' \/><input type='hidden' id='answerType28698' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28698[]' id='answer-id-118175' class='answer   answerof-28698 ' value='118175'   \/><label for='answer-id-118175' id='answer-label-118175' class=' answer'><span>The optimal plan is to produce 550 units of Product R and 650 units of product T in addition to the contract.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28698[]' id='answer-id-118176' class='answer   answerof-28698 ' value='118176'   \/><label for='answer-id-118176' id='answer-label-118176' class=' answer'><span>The optimal plan is to produce 520 units of Product R and 620 units of product T in addition to the contract.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28698[]' id='answer-id-118177' class='answer   answerof-28698 ' value='118177'   \/><label for='answer-id-118177' id='answer-label-118177' class=' answer'><span>The optimal plan is to produce 510 units of Product R and 720 units of product T in addition to the contract.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28698[]' id='answer-id-118178' class='answer   answerof-28698 ' value='118178'   \/><label for='answer-id-118178' id='answer-label-118178' class=' answer'><span>The optimal plan is to produce 560 units of Product R and 670 units of product T in addition to the contract.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28698[]' id='answer-id-118179' class='answer   answerof-28698 ' value='118179'   \/><label for='answer-id-118179' id='answer-label-118179' class=' answer'><span>The optimal plan is to produce 450 units of Product R and 690 units of product T in addition to the contract.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28698[]' id='answer-id-118180' class='answer   answerof-28698 ' value='118180'   \/><label for='answer-id-118180' id='answer-label-118180' class=' answer'><span>The optimal plan is to produce 500 units of Product R and 550 units of product T in addition to the contract.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-5' style=';'><div id='questionWrap-5'  class='   watupro-question-id-28699'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>5. <\/span>A company produces three products D, E and F. <br \/>\r<br>The statement below shows the selling price and product costs per unit for each product, based on a traditional absorption costing system. <br \/>\r<br><br><img decoding=\"async\" width=469 height=257 src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2018\/exams\/CIMAPRO15-P01-X1-ENG%20V8.files\/image003.gif\" v:shapes=\"_x0000_i1028\"><br><br \/>\r<br>Each of the products is produced using Process A which has a maximum capacity of 2,500 hours per period. <br \/>\r<br>If a traditional contribution approach is used, the ranking of products, in order of priority, for the profit maximizing product mix will be:<\/div><input type='hidden' name='question_id[]' id='qID_5' value='28699' \/><input type='hidden' id='answerType28699' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28699[]' id='answer-id-118181' class='answer   answerof-28699 ' value='118181'   \/><label for='answer-id-118181' id='answer-label-118181' class=' answer'><span>D, E, F<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28699[]' id='answer-id-118182' class='answer   answerof-28699 ' value='118182'   \/><label for='answer-id-118182' id='answer-label-118182' class=' answer'><span>E, D, F<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28699[]' id='answer-id-118183' class='answer   answerof-28699 ' value='118183'   \/><label for='answer-id-118183' id='answer-label-118183' class=' answer'><span>F, D, F<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28699[]' id='answer-id-118184' class='answer   answerof-28699 ' value='118184'   \/><label for='answer-id-118184' id='answer-label-118184' class=' answer'><span>D, E, F<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-6' style=';'><div id='questionWrap-6'  class='   watupro-question-id-28700'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>6. <\/span>A company produces three products D, E and F. The statement below shows the selling price and product costs per unit for each product, based on a traditional absorption costing system. <br \/>\r<br><br><img decoding=\"async\" width=469 height=257 src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2018\/exams\/CIMAPRO15-P01-X1-ENG%20V8.files\/image003.gif\" v:shapes=\"_x0000_i1029\"><br><br \/>\r<br>Each of the products is produced using Process A which has a maximum capacity of 2,500 hours per period. <br \/>\r<br>If a throughput accounting approach is used, the ranking of products, in order of priority, for the profit maximizing product mix will be:<\/div><input type='hidden' name='question_id[]' id='qID_6' value='28700' \/><input type='hidden' id='answerType28700' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28700[]' id='answer-id-118185' class='answer   answerof-28700 ' value='118185'   \/><label for='answer-id-118185' id='answer-label-118185' class=' answer'><span>D, E, F<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28700[]' id='answer-id-118186' class='answer   answerof-28700 ' value='118186'   \/><label for='answer-id-118186' id='answer-label-118186' class=' answer'><span>E, D, F<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28700[]' id='answer-id-118187' class='answer   answerof-28700 ' value='118187'   \/><label for='answer-id-118187' id='answer-label-118187' class=' answer'><span>F, D, E<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28700[]' id='answer-id-118188' class='answer   answerof-28700 ' value='118188'   \/><label for='answer-id-118188' id='answer-label-118188' class=' answer'><span>D, F, E<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-7' style=';'><div id='questionWrap-7'  class='   watupro-question-id-28701'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>7. <\/span>\u2018A zero-based budgeting system involves establishing decision packages that are then ranked in order of their relative importance in meeting the organization\u2019s objectives\u2019. <br \/>\r<br>Which of the following is true regarding he difficulties that a not-for-profit organization may experience when trying to rank decision packages. <br \/>\r<br>Select ALL true statements.<\/div><input type='hidden' name='question_id[]' id='qID_7' value='28701' \/><input type='hidden' id='answerType28701' value='checkbox'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28701[]' id='answer-id-118189' class='answer   answerof-28701 ' value='118189'   \/><label for='answer-id-118189' id='answer-label-118189' class=' answer'><span>The activities that are being proposed in a budget are described in variable packages. There will often be more less than one decision package proposed for an activity.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28701[]' id='answer-id-118190' class='answer   answerof-28701 ' value='118190'   \/><label for='answer-id-118190' id='answer-label-118190' class=' answer'><span>The activities that are being proposed in a budget are described in decision packages. There will often be more than one decision package proposed for an activity.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28701[]' id='answer-id-118191' class='answer   answerof-28701 ' value='118191'   \/><label for='answer-id-118191' id='answer-label-118191' class=' answer'><span>Some of these packages will be inclusive and will require operations to select the best solution to the issue involved.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28701[]' id='answer-id-118192' class='answer   answerof-28701 ' value='118192'   \/><label for='answer-id-118192' id='answer-label-118192' class=' answer'><span>Some of these packages will be mutually inclusive and will require management to select the best solution to the issue involved.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28701[]' id='answer-id-118193' class='answer   answerof-28701 ' value='118193'   \/><label for='answer-id-118193' id='answer-label-118193' class=' answer'><span>Each decision package is evaluated. Its costs are compared to its benefits and net present values or other measures calculated.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28701[]' id='answer-id-118194' class='answer   answerof-28701 ' value='118194'   \/><label for='answer-id-118194' id='answer-label-118194' class=' answer'><span>Management may decide to reject packages even though the activity was done last year. In this way the organization is said to be starting from a zero base with each package given due consideration.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28701[]' id='answer-id-118195' class='answer   answerof-28701 ' value='118195'   \/><label for='answer-id-118195' id='answer-label-118195' class=' answer'><span>Management may decide to accept packages even though the activity was done last year. In this way the organization is said to be starting from a 100% cost base with each package given due consideration.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28701[]' id='answer-id-118196' class='answer   answerof-28701 ' value='118196'   \/><label for='answer-id-118196' id='answer-label-118196' class=' answer'><span>In a public sector body, for example, decision packages will relate profit making activities.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28701[]' id='answer-id-118197' class='answer   answerof-28701 ' value='118197'   \/><label for='answer-id-118197' id='answer-label-118197' class=' answer'><span>In a public sector body, for example, decision packages will relate to very disparate activities.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-8' style=';'><div id='questionWrap-8'  class='   watupro-question-id-28702'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>8. <\/span>A company is considering whether to develop an overseas market for its products. The cost of developing the new market is estimated to be $250,000. There is a 70% probability that the development of the new market will succeed and a 30% probability that the development of the new market will fail and no further expenditure will be incurred. <br \/>\r<br>If the market development is successful, the profit from the new market will depend on prevailing exchange rates. There is a 50% chance that exchange rates will be in line with expectations and a profit of $500,000 will be made. There is a 20% chance that exchange rates will be favorable and a profit of $630,000 will be made and a 30% chance that exchange rates will be adverse and a profit of $100,000 will be made. <br \/>\r<br>The profit figures stated are before taking account of the development costs of $250,000. <br \/>\r<br>Use a decision tree to decide whether the company should develop an overseas market for its products. <br \/>\r<br>Select one correct answer.<\/div><input type='hidden' name='question_id[]' id='qID_8' value='28702' \/><input type='hidden' id='answerType28702' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28702[]' id='answer-id-118198' class='answer   answerof-28702 ' value='118198'   \/><label for='answer-id-118198' id='answer-label-118198' class=' answer'><span>There is 70% chance that the project will fail.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28702[]' id='answer-id-118199' class='answer   answerof-28702 ' value='118199'   \/><label for='answer-id-118199' id='answer-label-118199' class=' answer'><span>There is 65% chance that the project will fail.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28702[]' id='answer-id-118200' class='answer   answerof-28702 ' value='118200'   \/><label for='answer-id-118200' id='answer-label-118200' class=' answer'><span>The overseas market should not be developed.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28702[]' id='answer-id-118201' class='answer   answerof-28702 ' value='118201'   \/><label for='answer-id-118201' id='answer-label-118201' class=' answer'><span>The overseas market should be developed.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28702[]' id='answer-id-118202' class='answer   answerof-28702 ' value='118202'   \/><label for='answer-id-118202' id='answer-label-118202' class=' answer'><span>There is a chance to make $506 000 profit.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28702[]' id='answer-id-118203' class='answer   answerof-28702 ' value='118203'   \/><label for='answer-id-118203' id='answer-label-118203' class=' answer'><span>There may be a loss of $110 000.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-9' style=';'><div id='questionWrap-9'  class='   watupro-question-id-28703'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>9. <\/span>JL is preparing its cash budget for the next three quarters. <br \/>\r<br>The following data have been extracted from the operational budgets: <br \/>\r<br><br><img decoding=\"async\" width=401 height=105 src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2018\/exams\/CIMAPRO15-P01-X1-ENG%20V8.files\/image005.jpg\" v:shapes=\"_x0000_i1030\"><br><br \/>\r<br>Additional information is available as follows: <br \/>\r<br>&#8226; JL sells 20% of its goods for cash. Of the remaining sales value, 70% is received within the same quarter as sale and 30% is received in the following quarter. It is estimated that trade receivables will be $125,000 at the beginning of Quarter 1. No bad debts are anticipated. <br \/>\r<br>&#8226; 50% of payments for direct material purchases are made in the quarter of purchase, with the remaining 50% in the quarter following purchase. It is estimated that the amount owing for direct material purchases will be $60,000 at the beginning of Quarter 1. <br \/>\r<br>&#8226; JL pays labour and overhead costs when they are incurred. It has been estimated that labour and overhead costs in total will be $303,600 per quarter. This figure includes depreciation of $19,600. <br \/>\r<br>&#8226; JL expects to repay a loan of $100,000 in Quarter 3. <br \/>\r<br>&#8226; The cash balance at the beginning of Quarter 1 is estimated to be $49,400 positive. <br \/>\r<br>Required: <br \/>\r<br>Prepare a cash budget for each of the THREE quarters. <br \/>\r<br>What will the closing balance of cash flows in quarter THREE be?<\/div><input type='hidden' name='question_id[]' id='qID_9' value='28703' \/><input type='hidden' id='answerType28703' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28703[]' id='answer-id-118204' class='answer   answerof-28703 ' value='118204'   \/><label for='answer-id-118204' id='answer-label-118204' class=' answer'><span>$100 200<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28703[]' id='answer-id-118205' class='answer   answerof-28703 ' value='118205'   \/><label for='answer-id-118205' id='answer-label-118205' class=' answer'><span>$170 400<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28703[]' id='answer-id-118206' class='answer   answerof-28703 ' value='118206'   \/><label for='answer-id-118206' id='answer-label-118206' class=' answer'><span>$145 000<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28703[]' id='answer-id-118207' class='answer   answerof-28703 ' value='118207'   \/><label for='answer-id-118207' id='answer-label-118207' class=' answer'><span>$150 200<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28703[]' id='answer-id-118208' class='answer   answerof-28703 ' value='118208'   \/><label for='answer-id-118208' id='answer-label-118208' class=' answer'><span>$130 200<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28703[]' id='answer-id-118209' class='answer   answerof-28703 ' value='118209'   \/><label for='answer-id-118209' id='answer-label-118209' class=' answer'><span>$160 690<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28703[]' id='answer-id-118210' class='answer   answerof-28703 ' value='118210'   \/><label for='answer-id-118210' id='answer-label-118210' class=' answer'><span>$184 900<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-10' style=';'><div id='questionWrap-10'  class='   watupro-question-id-28704'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>10. <\/span>Explain why sensitivity analysis is useful when dealing with uncertainty in project appraisal. Select all the true statements.<\/div><input type='hidden' name='question_id[]' id='qID_10' value='28704' \/><input type='hidden' id='answerType28704' value='checkbox'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28704[]' id='answer-id-118211' class='answer   answerof-28704 ' value='118211'   \/><label for='answer-id-118211' id='answer-label-118211' class=' answer'><span>Sensitivity analysis enables a company to determine the effect of changes to fixed costs on the planned outcome<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28704[]' id='answer-id-118212' class='answer   answerof-28704 ' value='118212'   \/><label for='answer-id-118212' id='answer-label-118212' class=' answer'><span>Sensitivity analysis enables a company to determine the effect of changes to variables on the planned outcome<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28704[]' id='answer-id-118213' class='answer   answerof-28704 ' value='118213'   \/><label for='answer-id-118213' id='answer-label-118213' class=' answer'><span>In project appraisal, an analysis can be made if all the key variables to ascertain by how much variable would need to change before the net present value (NPV) reaches zero i.e. the indifference point.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28704[]' id='answer-id-118214' class='answer   answerof-28704 ' value='118214'   \/><label for='answer-id-118214' id='answer-label-118214' class=' answer'><span>In project appraisal, in analysis can be made of all the key variables to ascertain by how much each variable would need to change before the net present value (NPV) reaches 100% i.e. the maximum point.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-11' style=';'><div id='questionWrap-11'  class='   watupro-question-id-28705'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>11. <\/span>A company has budgeted to produce 5,000 units of Product B per month. The opening and closing inventories of Product B for next month are budgeted to be 400 units and 900 units respectively. <br \/>\r<br>The budgeted selling price and variable production costs per unit for Product B are as follows: <br \/>\r<br><br><img decoding=\"async\" width=338 height=58 src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2018\/exams\/CIMAPRO15-P01-X1-ENG%20V8.files\/image006.gif\" v:shapes=\"_x0000_i1031\"><br><br \/>\r<br>Total budgeted fixed production overheads are $29,500 per month. <br \/>\r<br>The company absorbs fixed production overheads on the basis of the budgeted number of units produced. The budgeted profit for Product B for next month, using absorption costing, is $20,700. <br \/>\r<br>Prepare a marginal costing statement which shows the budgeted profit for Product B for next month. <br \/>\r<br>What was the marginal costing profit for the next month?<\/div><input type='hidden' name='question_id[]' id='qID_11' value='28705' \/><input type='hidden' id='answerType28705' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28705[]' id='answer-id-118215' class='answer   answerof-28705 ' value='118215'   \/><label for='answer-id-118215' id='answer-label-118215' class=' answer'><span>$17 750<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28705[]' id='answer-id-118216' class='answer   answerof-28705 ' value='118216'   \/><label for='answer-id-118216' id='answer-label-118216' class=' answer'><span>$18 600<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28705[]' id='answer-id-118217' class='answer   answerof-28705 ' value='118217'   \/><label for='answer-id-118217' id='answer-label-118217' class=' answer'><span>$17 890<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28705[]' id='answer-id-118218' class='answer   answerof-28705 ' value='118218'   \/><label for='answer-id-118218' id='answer-label-118218' class=' answer'><span>$18 750<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-12' style=';'><div id='questionWrap-12'  class='   watupro-question-id-28706'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>12. <\/span>A company has budgeted to produce 5,000 units of Product B per month. The opening and closing inventories of Product B for next month are budgeted to be 400 units and 900 units respectively. <br \/>\r<br>The budgeted selling price and variable production costs per unit for Product B are as follows: <br \/>\r<br><br><img decoding=\"async\" width=338 height=58 src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2018\/exams\/CIMAPRO15-P01-X1-ENG%20V8.files\/image006.gif\" v:shapes=\"_x0000_i1032\"><br><br \/>\r<br>Total budgeted fixed production overheads are $29,500 per month. The company absorbs fixed production overheads on the basis of the budgeted number of units produced. The budgeted profit for Product B for next month, using absorption costing, is $20,700. Prepare a marginal costing statement which shows the budgeted profit for Product B for next month. <br \/>\r<br>What was the difference between the profit calculation using marginal costing and the profit calculation using absorption costing?<\/div><input type='hidden' name='question_id[]' id='qID_12' value='28706' \/><input type='hidden' id='answerType28706' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28706[]' id='answer-id-118219' class='answer   answerof-28706 ' value='118219'   \/><label for='answer-id-118219' id='answer-label-118219' class=' answer'><span>$2870<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28706[]' id='answer-id-118220' class='answer   answerof-28706 ' value='118220'   \/><label for='answer-id-118220' id='answer-label-118220' class=' answer'><span>$3010<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28706[]' id='answer-id-118221' class='answer   answerof-28706 ' value='118221'   \/><label for='answer-id-118221' id='answer-label-118221' class=' answer'><span>$2950<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28706[]' id='answer-id-118222' class='answer   answerof-28706 ' value='118222'   \/><label for='answer-id-118222' id='answer-label-118222' class=' answer'><span>$3610<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28706[]' id='answer-id-118223' class='answer   answerof-28706 ' value='118223'   \/><label for='answer-id-118223' id='answer-label-118223' class=' answer'><span>$2750<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-13' style=';'><div id='questionWrap-13'  class='   watupro-question-id-28707'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>13. <\/span>A healthcare company specializes in hip, knee and shoulder replacement operations, known as surgical procedures. As well as providing these surgical procedures the company offers pre operation and post operation in-patient care, in a fully equipped hospital, for those patients who will be undergoing the surgical procedures. <br \/>\r<br>Surgeons are paid a fixed fee for each surgical procedure they perform and an additional amount for any follow-up consultations. Post procedure follow-up consultations are only undertaken if there are any <br \/>\r<br>complications in relation to the surgical procedure. There is no additional fee charged to patients for any follow up consultations. All other staff are paid annual salaries. <br \/>\r<br>The company\u2019s existing costing system uses a single overhead rate, based on revenue, to charge the costs of support activities to the procedures. Concern has been raised about the inaccuracy of procedure costs and the company\u2019s accountant has initiated a project to implement an activity-based costing (ABC) system. The project team has collected the following data on each of the procedures. <br \/>\r<br><br><img decoding=\"async\" width=542 height=388 src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2018\/exams\/CIMAPRO15-P01-X1-ENG%20V8.files\/image007.gif\" v:shapes=\"_x0000_i1033\"><br><br \/>\r<br>Calculate the profit per procedure for each of the three procedures, using the current basis for charging the costs of support activities to procedures. <br \/>\r<br>What was the profit for the knee procedure?<\/div><input type='hidden' name='question_id[]' id='qID_13' value='28707' \/><input type='hidden' id='answerType28707' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28707[]' id='answer-id-118224' class='answer   answerof-28707 ' value='118224'   \/><label for='answer-id-118224' id='answer-label-118224' class=' answer'><span>$1510<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28707[]' id='answer-id-118225' class='answer   answerof-28707 ' value='118225'   \/><label for='answer-id-118225' id='answer-label-118225' class=' answer'><span>$1210<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28707[]' id='answer-id-118226' class='answer   answerof-28707 ' value='118226'   \/><label for='answer-id-118226' id='answer-label-118226' class=' answer'><span>$1390<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28707[]' id='answer-id-118227' class='answer   answerof-28707 ' value='118227'   \/><label for='answer-id-118227' id='answer-label-118227' class=' answer'><span>$1485<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-14' style=';'><div id='questionWrap-14'  class='   watupro-question-id-28708'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>14. <\/span>A healthcare company specializes in hip, knee and shoulder replacement operations, known as surgical procedures. As well as providing these surgical procedures the company offers pre operation and post operation in-patient care, in a fully equipped hospital, for those patients who will be undergoing the surgical procedures. Surgeons are paid a fixed fee for each surgical procedure they perform and an additional amount for any follow-up consultations. Post procedure follow-up consultations are only undertaken if there are any complications in relation to the surgical procedure. There is no additional fee charged to patients for any follow up consultations. All other staff are paid annual salaries. <br \/>\r<br>The company\u2019s existing costing system uses a single overhead rate, based on revenue, to charge the costs of support activities to the procedures. Concern has been raised about the inaccuracy of procedure costs and the company\u2019s accountant has initiated a project to implement an activity-based costing (ABC) system. The project team has collected the following data on each of the procedures. <br \/>\r<br><br><img decoding=\"async\" width=542 height=388 src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2018\/exams\/CIMAPRO15-P01-X1-ENG%20V8.files\/image007.gif\" v:shapes=\"_x0000_i1034\"><br><br \/>\r<br>Calculate the profit per procedure for each of the three procedures using activity-based costing. <br \/>\r<br>What was the profit for the knee procedure, using ABC costing?<\/div><input type='hidden' name='question_id[]' id='qID_14' value='28708' \/><input type='hidden' id='answerType28708' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28708[]' id='answer-id-118228' class='answer   answerof-28708 ' value='118228'   \/><label for='answer-id-118228' id='answer-label-118228' class=' answer'><span>$2466<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28708[]' id='answer-id-118229' class='answer   answerof-28708 ' value='118229'   \/><label for='answer-id-118229' id='answer-label-118229' class=' answer'><span>$781<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28708[]' id='answer-id-118230' class='answer   answerof-28708 ' value='118230'   \/><label for='answer-id-118230' id='answer-label-118230' class=' answer'><span>$1808<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28708[]' id='answer-id-118231' class='answer   answerof-28708 ' value='118231'   \/><label for='answer-id-118231' id='answer-label-118231' class=' answer'><span>$2305<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-15' style=';'><div id='questionWrap-15'  class='   watupro-question-id-28709'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>15. <\/span>Assume that you have made profit calculations based on standard profit calculation methods and activity based costing methods. <br \/>\r<br>In which ways will this information be beneficial to the management team? <br \/>\r<br>Select all the true statements.<\/div><input type='hidden' name='question_id[]' id='qID_15' value='28709' \/><input type='hidden' id='answerType28709' value='checkbox'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28709[]' id='answer-id-118232' class='answer   answerof-28709 ' value='118232'   \/><label for='answer-id-118232' id='answer-label-118232' class=' answer'><span>Under an activity based costing system the various support activities that are involved in the process of making products or providing services are identified.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28709[]' id='answer-id-118233' class='answer   answerof-28709 ' value='118233'   \/><label for='answer-id-118233' id='answer-label-118233' class=' answer'><span>The cost drivers that cause a change to the cost of activities are also identified and used as the basis to attach activity costs to a particular product or service.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28709[]' id='answer-id-118234' class='answer   answerof-28709 ' value='118234'   \/><label for='answer-id-118234' id='answer-label-118234' class=' answer'><span>Through the tracing of costs to product in this way ABC establishes less accurate costs for the product \r\nor service.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28709[]' id='answer-id-118235' class='answer   answerof-28709 ' value='118235'   \/><label for='answer-id-118235' id='answer-label-118235' class=' answer'><span>The identification of cost drivers provides information to management to enable them to take actions to improve the overall profitability of the company.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28709[]' id='answer-id-118236' class='answer   answerof-28709 ' value='118236'   \/><label for='answer-id-118236' id='answer-label-118236' class=' answer'><span>Operational analysis will provide information to management on how costs can be incurred and managed.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-16' style=';'><div id='questionWrap-16'  class='   watupro-question-id-28710'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>16. <\/span>Explain the advantages of management participation in budget setting and the potential problems that may arise in the use of the resulting budget as a control mechanism. <br \/>\r<br>Select all the correct answers.<\/div><input type='hidden' name='question_id[]' id='qID_16' value='28710' \/><input type='hidden' id='answerType28710' value='checkbox'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28710[]' id='answer-id-118237' class='answer   answerof-28710 ' value='118237'   \/><label for='answer-id-118237' id='answer-label-118237' class=' answer'><span>A purposes of budgeting is to act as a control mechanism, with actual results being compared against budget.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28710[]' id='answer-id-118238' class='answer   answerof-28710 ' value='118238'   \/><label for='answer-id-118238' id='answer-label-118238' class=' answer'><span>Another purpose of a budget is to set targets to motivate managers and optimize their performance.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28710[]' id='answer-id-118239' class='answer   answerof-28710 ' value='118239'   \/><label for='answer-id-118239' id='answer-label-118239' class=' answer'><span>The participation of managers in the budget setting process has several advantages. Managers are more likely to be motivated to achieve the target if they have participated in setting process has several advantages. managers are more likely to be motivated to achieve the target if they have participated in setting the target.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28710[]' id='answer-id-118240' class='answer   answerof-28710 ' value='118240'   \/><label for='answer-id-118240' id='answer-label-118240' class=' answer'><span>Participation in budget setting can reduce the information asymmetry gap that can arise when targets are imposed by senior management. Imposed targets are likely to make managers feel demotivated and alienated and result in poor performance.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28710[]' id='answer-id-118241' class='answer   answerof-28710 ' value='118241'   \/><label for='answer-id-118241' id='answer-label-118241' class=' answer'><span>Participation in budget setting can cause problems; in particular, managers may attempt to negotiate budgets that they feel are easy to achieve which gives rise to \u201cbudget padding\u201d or budgetary slack.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28710[]' id='answer-id-118242' class='answer   answerof-28710 ' value='118242'   \/><label for='answer-id-118242' id='answer-label-118242' class=' answer'><span>Managers will not \u2018empire build\u2019 because they don\u2019t believe that the size of their budget reflects their importance within the organization.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-17' style=';'><div id='questionWrap-17'  class='   watupro-question-id-28711'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>17. <\/span>JRL manufactures two products from different combinations of the same resources. <br \/>\r<br>Unit selling prices and unit cost details for each product are as follows: <br \/>\r<br><br><img decoding=\"async\" width=518 height=350 src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2018\/exams\/CIMAPRO15-P01-X1-ENG%20V8.files\/image008.gif\" v:shapes=\"_x0000_i1035\"><br><br \/>\r<br>Identify, using graphical linear programming, the weekly production schedule for products J and L that will maximize the profits of JRL during the next four weeks.<\/div><input type='hidden' name='question_id[]' id='qID_17' value='28711' \/><input type='hidden' id='answerType28711' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118243' class='answer   answerof-28711 ' value='118243'   \/><label for='answer-id-118243' id='answer-label-118243' class=' answer'><span>The solution from the graph is to produce 330 units of J and 280 units of<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118244' class='answer   answerof-28711 ' value='118244'   \/><label for='answer-id-118244' id='answer-label-118244' class=' answer'><span>(A simplex solution shows the true optimum to be 332.333 units of J and 283.333 units of<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118245' class='answer   answerof-28711 ' value='118245'   \/><label for='answer-id-118245' id='answer-label-118245' class=' answer'><span>)<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118246' class='answer   answerof-28711 ' value='118246'   \/><label for='answer-id-118246' id='answer-label-118246' class=' answer'><span>The solution from the graph is to produce 310 units of J and 280 units of<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118247' class='answer   answerof-28711 ' value='118247'   \/><label for='answer-id-118247' id='answer-label-118247' class=' answer'><span>(A simplex solution shows the true optimum to be 308.333 units of J and 283.333 units of<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118248' class='answer   answerof-28711 ' value='118248'   \/><label for='answer-id-118248' id='answer-label-118248' class=' answer'><span>)<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118249' class='answer   answerof-28711 ' value='118249'   \/><label for='answer-id-118249' id='answer-label-118249' class=' answer'><span>The solution from the graph is to produce 330 units of J and 290 units of<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118250' class='answer   answerof-28711 ' value='118250'   \/><label for='answer-id-118250' id='answer-label-118250' class=' answer'><span>(A simplex solution shows the true optimum to be 332.333 units of J and 293.333 units of<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118251' class='answer   answerof-28711 ' value='118251'   \/><label for='answer-id-118251' id='answer-label-118251' class=' answer'><span>)<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118252' class='answer   answerof-28711 ' value='118252'   \/><label for='answer-id-118252' id='answer-label-118252' class=' answer'><span>The solution from the graph is to produce 315 units of J and 290 units of<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118253' class='answer   answerof-28711 ' value='118253'   \/><label for='answer-id-118253' id='answer-label-118253' class=' answer'><span>(A simplex solution shows the true optimum to be 316.333 units of J and 293.333 units of<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118254' class='answer   answerof-28711 ' value='118254'   \/><label for='answer-id-118254' id='answer-label-118254' class=' answer'><span>)<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118255' class='answer   answerof-28711 ' value='118255'   \/><label for='answer-id-118255' id='answer-label-118255' class=' answer'><span>The solution from the graph is to produce 312 units of J and 295 units of<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118256' class='answer   answerof-28711 ' value='118256'   \/><label for='answer-id-118256' id='answer-label-118256' class=' answer'><span>(A simplex solution shows the true optimum to be 312.333 units of J and 294.999 units of<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118257' class='answer   answerof-28711 ' value='118257'   \/><label for='answer-id-118257' id='answer-label-118257' class=' answer'><span>)<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118258' class='answer   answerof-28711 ' value='118258'   \/><label for='answer-id-118258' id='answer-label-118258' class=' answer'><span>The solution from the graph is to produce 317 units of J and 270 units of<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118259' class='answer   answerof-28711 ' value='118259'   \/><label for='answer-id-118259' id='answer-label-118259' class=' answer'><span>(A simplex solution shows the true optimum to be 316.666 units of J and 269.666 units of<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28711[]' id='answer-id-118260' class='answer   answerof-28711 ' value='118260'   \/><label for='answer-id-118260' id='answer-label-118260' class=' answer'><span>)<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-18' style=';'><div id='questionWrap-18'  class='   watupro-question-id-28712'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>18. <\/span>JRL manufactures two products from different combinations of the same resources.<br \/>\r\n<br \/>\r\nUnit selling prices and unit cost details for each product are as follows:<br \/>\r\n<br \/>\r\n<br \/>\r\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2018\/exams\/CIMAPRO15-P01-X1-ENG%20V8.files\/image008.gif\" width=\"518\" height=\"350\" \/>* Refer to your answer in the previous question.<br \/>\r\n<br \/>\r\nThe optimal solution to the previous question shows that the shadow prices of skilled labour and direct material A are as follows:<br \/>\r\n<br \/>\r\nSkilled labour $ Nil Direct Material A $11.70<br \/>\r\n<br \/>\r\nExplain the relevance of these values to the management of JRL.<br \/>\r\n<br \/>\r\nSelect ALL the true statements.<\/div><input type='hidden' name='question_id[]' id='qID_18' value='28712' \/><input type='hidden' id='answerType28712' value='checkbox'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28712[]' id='answer-id-118261' class='answer   answerof-28712 ' value='118261'   \/><label for='answer-id-118261' id='answer-label-118261' class=' answer'><span>The shadow price equals the additional contribution that would be earned from one extra unit of a scarce resource.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28712[]' id='answer-id-118262' class='answer   answerof-28712 ' value='118262'   \/><label for='answer-id-118262' id='answer-label-118262' class=' answer'><span>In a situation such as this, where a number of resources are scarce, the shadow price of any particular scarce resource will depend on whether or not the resource is not binding.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28712[]' id='answer-id-118263' class='answer   answerof-28712 ' value='118263'   \/><label for='answer-id-118263' id='answer-label-118263' class=' answer'><span>The shadow price for skilled labour is NIL because although there is a shortage of skilled labour it does have a constraining effect on output of JR as other resources are more scarce.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28712[]' id='answer-id-118264' class='answer   answerof-28712 ' value='118264'   \/><label for='answer-id-118264' id='answer-label-118264' class=' answer'><span>Since material A is one of the binding constraints, if the availability of material A could be increased by one unit, this would change the optimal plan.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28712[]' id='answer-id-118265' class='answer   answerof-28712 ' value='118265'   \/><label for='answer-id-118265' id='answer-label-118265' class=' answer'><span>The decrease in contribution as a result of this change is the value of the shadow price of material A. The shadow price thus represents the maximum premium that should be paid for an additional unit of material A.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-19' style=';'><div id='questionWrap-19'  class='   watupro-question-id-28713'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>19. <\/span>A master budget comprises the...<\/div><input type='hidden' name='question_id[]' id='qID_19' value='28713' \/><input type='hidden' id='answerType28713' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28713[]' id='answer-id-118266' class='answer   answerof-28713 ' value='118266'   \/><label for='answer-id-118266' id='answer-label-118266' class=' answer'><span>budgeted income statement and budgeted cash flow statement only.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28713[]' id='answer-id-118267' class='answer   answerof-28713 ' value='118267'   \/><label for='answer-id-118267' id='answer-label-118267' class=' answer'><span>budgeted income statement and budgeted balance sheet only.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28713[]' id='answer-id-118268' class='answer   answerof-28713 ' value='118268'   \/><label for='answer-id-118268' id='answer-label-118268' class=' answer'><span>budgeted income statement and budgeted capital expenditure only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28713[]' id='answer-id-118269' class='answer   answerof-28713 ' value='118269'   \/><label for='answer-id-118269' id='answer-label-118269' class=' answer'><span>budgeted income statement, budgeted balance sheet and budgeted cash flow statement only.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-20' style=';'><div id='questionWrap-20'  class='   watupro-question-id-28714'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>20. <\/span>A company\u2019s management is considering investing in a project with an expected life of 4 years. It has a positive net present value of $180,000 when cash flows are discounted at 8% per annum. The project\u2019s cash flows include a cash outflow of $100,000 for each of the four years. No tax is payable on projects of this type. <br \/>\r<br>The percentage increase in the annual cash outflow that would cause the company\u2019s management to reject the project from a financial perspective is, to the nearest 0.1%:<\/div><input type='hidden' name='question_id[]' id='qID_20' value='28714' \/><input type='hidden' id='answerType28714' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28714[]' id='answer-id-118270' class='answer   answerof-28714 ' value='118270'   \/><label for='answer-id-118270' id='answer-label-118270' class=' answer'><span>54.3%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28714[]' id='answer-id-118271' class='answer   answerof-28714 ' value='118271'   \/><label for='answer-id-118271' id='answer-label-118271' class=' answer'><span>45.0%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28714[]' id='answer-id-118272' class='answer   answerof-28714 ' value='118272'   \/><label for='answer-id-118272' id='answer-label-118272' class=' answer'><span>55,6%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28714[]' id='answer-id-118273' class='answer   answerof-28714 ' value='118273'   \/><label for='answer-id-118273' id='answer-label-118273' class=' answer'><span>184.0%<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-21' style=';'><div id='questionWrap-21'  class='   watupro-question-id-28715'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>21. <\/span>A medium-sized manufacturing company, which operates in the electronics industry, has employed a firm of consultants to carry out a review of the company\u2019s planning and control systems. The company presently uses a traditional incremental budgeting system and the inventory management system is based on economic order quantities (EOQ) and reorder levels. The company\u2019s normal production patterns have changed significantly over the previous few years as a result of increasing demand for customized products. This has resulted in shorter production runs and difficulties with production and resource planning. <br \/>\r<br>The consultants have recommended the implementation of activity based budgeting and a manufacturing resource planning system to improve planning and resource management. <br \/>\r<br>How will a manufacturing resource planning system improve the planning of purchases and production for the company? <br \/>\r<br>Select ALL the correct answers.<\/div><input type='hidden' name='question_id[]' id='qID_21' value='28715' \/><input type='hidden' id='answerType28715' value='checkbox'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28715[]' id='answer-id-118274' class='answer   answerof-28715 ' value='118274'   \/><label for='answer-id-118274' id='answer-label-118274' class=' answer'><span>The traditional approach to determine material requirements is to monitor inventories constantly; whenever they fall to a predetermined level, a preset order is placed to replenish them. This traditional approach (involving re-order levels and economic order quantity calculations originates in the pre-computer era.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28715[]' id='answer-id-118275' class='answer   answerof-28715 ' value='118275'   \/><label for='answer-id-118275' id='answer-label-118275' class=' answer'><span>A manufacturing resource planning approach to the management of all the company\u2019s manufacturing resources including inventory, labour and machine capacity.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28715[]' id='answer-id-118276' class='answer   answerof-28715 ' value='118276'   \/><label for='answer-id-118276' id='answer-label-118276' class=' answer'><span>It seeks to ensure that resources are available just before they are needed by the next stage of production or dispatch. It also seeks to ensure that resources are delivered only when required so that raw material inventory is kept to a minimum.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28715[]' id='answer-id-118277' class='answer   answerof-28715 ' value='118277'   \/><label for='answer-id-118277' id='answer-label-118277' class=' answer'><span>The technique will not enable managers to track orders through the manufacturing process and will not assist the purchasing and production control departments to move the right amount of material or sub&shy;assemblies at the right time to the right place.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28715[]' id='answer-id-118278' class='answer   answerof-28715 ' value='118278'   \/><label for='answer-id-118278' id='answer-label-118278' class=' answer'><span>The correct inventory management system relies on the assumption that there is constant demand. An MRP system begins with the setting of a master production schedule specifying both the timing and quantity demanded of each of the finished goods items and then works backwards to determine the resource requirements at each stage of the production process.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28715[]' id='answer-id-118279' class='answer   answerof-28715 ' value='118279'   \/><label for='answer-id-118279' id='answer-label-118279' class=' answer'><span>It aims to generate an estimation of materials requirements after taking account of the number of employees quality and waste. The TQS model can be used within MRP provided that the major assumption in the TQS model of constant demand applies.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-22' style=';'><div id='questionWrap-22'  class='   watupro-question-id-28716'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>22. <\/span>A medium-sized manufacturing company, which operates in the electronics industry, has employed a firm of consultants to carry out a review of the company\u2019s planning and control systems. The company presently uses a traditional incremental budgeting system and the inventory management system is based on economic order quantities (EOQ) and reorder levels. The company\u2019s normal production patterns have changed significantly over the previous few years as a result of increasing demand for customized products. This has resulted in shorter production runs and difficulties with production and resource planning. The consultants have recommended the implementation of activity based budgeting and a manufacturing resource planning system to improve planning and resource management. <br \/>\r<br>What are the benefits for the company that could occur following the introduction of an activity based budgeting system? <br \/>\r<br>Select ALL the correct answers.<\/div><input type='hidden' name='question_id[]' id='qID_22' value='28716' \/><input type='hidden' id='answerType28716' value='checkbox'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28716[]' id='answer-id-118280' class='answer   answerof-28716 ' value='118280'   \/><label for='answer-id-118280' id='answer-label-118280' class=' answer'><span>Under an activity based budgeting system, resource allocation is linked to the strategic plan and is prepared after considering alternative strategies. This approach ensures that new activities that are required to meet the company\u2019s strategic objectives are included in the budget.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28716[]' id='answer-id-118281' class='answer   answerof-28716 ' value='118281'   \/><label for='answer-id-118281' id='answer-label-118281' class=' answer'><span>Under a traditional incremental budgeting system the focus is on existing resources and operations. Adjustments are then made for changes in activity and price which results in past inefficiencies being perpetuated. Under an activity based budgeting system, only resources that are needed to perform activities required to meet the budgeted production and sales volumes are included.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28716[]' id='answer-id-118282' class='answer   answerof-28716 ' value='118282'   \/><label for='answer-id-118282' id='answer-label-118282' class=' answer'><span>Activity based techniques including activity based budgeting focus on the outputs of a process rather than the input to the process. This approach provides a clear framework for understanding the link between costs and the level of activity. It allows the ranking of activities and the determination of how limited resources should be allocated across competing activities.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28716[]' id='answer-id-118283' class='answer   answerof-28716 ' value='118283'   \/><label for='answer-id-118283' id='answer-label-118283' class=' answer'><span>Activity Based Budgeting Systems present costs under functional headings i.e. the emphasis is on the nature of the cost. The weakness if this approach is that it gives little indication of the link between the level of activity and the cost incurred.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28716[]' id='answer-id-118284' class='answer   answerof-28716 ' value='118284'   \/><label for='answer-id-118284' id='answer-label-118284' class=' answer'><span>The approach under an Activity based Budgeting System is to make arbitrary cuts in order to meet overall financial targets.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-23' style=';'><div id='questionWrap-23'  class='   watupro-question-id-28717'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>23. <\/span>RFT, an engineering company, has been asked to provide a quotation for a contract to build a new engine. The potential customer is not a current customer of RFT, but the directors of RFT are keen to try and win the contract as they believe that this may lead to more contracts in the future. As a result, they intend pricing the contract using relevant costs. The following information has been obtained from a two-hour meeting that the Production Director of RFT had with the potential customer. The Production Director is paid an annual salary equivalent to $1,200 per 8-hour day. 110 square meters of material A will be required. This is a material that is regularly used by RFT and there are 200 square meters currently in inventory. These were bought at a cost of $12 per square meter. They have a resale value of $10.50 per square meter and their current replacement cost is $12.50 per square meter. 30 liters of material B will be required. This material will have to be purchased for the contract because it is not otherwise used by RFT. The minimum order quantity from the supplier is 40 liters at a cost of $9 per liter. RFT does not expect to have any use for any of this material that remains after this contract is completed. 60 components will be required. These will be purchased from HY. The purchase price is $50 per component. A total of 235 direct labour hours will be required. The current wage rate for the appropriate grade of direct labour is $11 per hour. Currently RFT has 75 direct labour hours of spare capacity at this grade that is being paid under a guaranteed wage agreement. The additional hours would need to be obtained by either (i) overtime at a total cost of $14 per hour; or (ii) recruiting temporary staff at a cost of $12 per hour. <br \/>\r<br>However, if temporary staff are used they will not be as experienced as RFT\u2019s existing workers and will require 10 hours supervision by an existing supervisor who would be paid overtime at a cost of $18 per hour for this work. 25 machine hours will be required. The machine to be used is already leased for a weekly leasing cost of $600. It has a capacity of 40 hours per week. The machine has sufficient available capacity for the contract to be completed. The variable running cost of the machine is $7 per hour. The company absorbs its fixed overhead costs using an absorption rate of $20 per direct labour hour. <br \/>\r<br>Select ALL the true statements.<\/div><input type='hidden' name='question_id[]' id='qID_23' value='28717' \/><input type='hidden' id='answerType28717' value='checkbox'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28717[]' id='answer-id-118285' class='answer   answerof-28717 ' value='118285'   \/><label for='answer-id-118285' id='answer-label-118285' class=' answer'><span>The cost for the production director meeting was a relevant cost.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28717[]' id='answer-id-118286' class='answer   answerof-28717 ' value='118286'   \/><label for='answer-id-118286' id='answer-label-118286' class=' answer'><span>Material A was a relevant cost.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28717[]' id='answer-id-118287' class='answer   answerof-28717 ' value='118287'   \/><label for='answer-id-118287' id='answer-label-118287' class=' answer'><span>Material B was a relevant cost.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28717[]' id='answer-id-118288' class='answer   answerof-28717 ' value='118288'   \/><label for='answer-id-118288' id='answer-label-118288' class=' answer'><span>The components are to be purchased from HY at a cost of $50 each. This is a relevant cost because it is future expenditure that will be incurred as a result of the work being undertaken.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28717[]' id='answer-id-118289' class='answer   answerof-28717 ' value='118289'   \/><label for='answer-id-118289' id='answer-label-118289' class=' answer'><span>The machine is currently being leased and it has spare capacity so it will either stand idle or be used on this work. The lease cost will be a relevant cost or $10 per hour.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28717[]' id='answer-id-118290' class='answer   answerof-28717 ' value='118290'   \/><label for='answer-id-118290' id='answer-label-118290' class=' answer'><span>The company absorbs its fixed overhead costs using an absorption rate of $20 per direct labour hour. This is a relevant cost.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28717[]' id='answer-id-118291' class='answer   answerof-28717 ' value='118291'   \/><label for='answer-id-118291' id='answer-label-118291' class=' answer'><span>The relevant cost is $7010<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28717[]' id='answer-id-118292' class='answer   answerof-28717 ' value='118292'   \/><label for='answer-id-118292' id='answer-label-118292' class=' answer'><span>The relevant cost is $7080<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28717[]' id='answer-id-118293' class='answer   answerof-28717 ' value='118293'   \/><label for='answer-id-118293' id='answer-label-118293' class=' answer'><span>The relevant cost is $7100<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-24' style=';'><div id='questionWrap-24'  class='   watupro-question-id-28718'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>24. <\/span>A company has to choose between three mutually exclusive projects. Market research has shown that customers could react to the projects in three different ways depending on their preferences. There is a 30% chance that customers will exhibit preferences 1, a 20% chance they will exhibit preferences 2 and a 50% chance they will exhibit preferences 3. The company uses expected value to make this type of decision. <br \/>\r<br>The net present value of each of the possible outcomes is as follows: <br \/>\r<br><br><img decoding=\"async\" width=366 height=118 src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2018\/exams\/CIMAPRO15-P01-X1-ENG%20V8.files\/image009.gif\" v:shapes=\"_x0000_i1037\"><br><br \/>\r<br>A market research company believes it can provide perfect information about the preferences of customers in this market. <br \/>\r<br>What is the maximum amount that should be paid for the information from the market research company?<\/div><input type='hidden' name='question_id[]' id='qID_24' value='28718' \/><input type='hidden' id='answerType28718' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28718[]' id='answer-id-118294' class='answer   answerof-28718 ' value='118294'   \/><label for='answer-id-118294' id='answer-label-118294' class=' answer'><span>$145 000<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28718[]' id='answer-id-118295' class='answer   answerof-28718 ' value='118295'   \/><label for='answer-id-118295' id='answer-label-118295' class=' answer'><span>$140 000<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28718[]' id='answer-id-118296' class='answer   answerof-28718 ' value='118296'   \/><label for='answer-id-118296' id='answer-label-118296' class=' answer'><span>$125 000<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28718[]' id='answer-id-118297' class='answer   answerof-28718 ' value='118297'   \/><label for='answer-id-118297' id='answer-label-118297' class=' answer'><span>$135 000<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-25' style=';'><div id='questionWrap-25'  class='   watupro-question-id-28719'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>25. <\/span>A medium-sized manufacturing company, which operates in the electronics industry, has employed a firm of consultants to carry out a review of the company\u2019s planning and control systems. The company presently uses a traditional incremental budgeting system and the inventory management system is based on economic order quantities (EOQ) and reorder levels. The company\u2019s normal production patterns have changed significantly over the previous few years as a result of increasing demand for customized products. This has resulted in shorter production runs and difficulties with production and resource planning. <br \/>\r<br>The consultants have recommended the implementation of activity based budgeting and a manufacturing resource planning system to improve planning and resource management. Select ALL the benefits for the company that could occur following the introduction of an activity based budgeting system.<\/div><input type='hidden' name='question_id[]' id='qID_25' value='28719' \/><input type='hidden' id='answerType28719' value='checkbox'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28719[]' id='answer-id-118298' class='answer   answerof-28719 ' value='118298'   \/><label for='answer-id-118298' id='answer-label-118298' class=' answer'><span>Under an activity based budgeting system, resource allocation is linked to the strategic plan is prepared after considering alternative strategies. This approach ensures that new activities that are required to meet the company\u2019s strategic objectives are included in the budget.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28719[]' id='answer-id-118299' class='answer   answerof-28719 ' value='118299'   \/><label for='answer-id-118299' id='answer-label-118299' class=' answer'><span>Under an activity based budgeting system the focus is on existing resources and operations. Adjustments are then made for changes in activity and price which results in past inefficiencies being perpetuated. Under a traditional budgeting system, only resources that are needed to perform activities required to meet the budgeted production and sales volumes are included.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28719[]' id='answer-id-118300' class='answer   answerof-28719 ' value='118300'   \/><label for='answer-id-118300' id='answer-label-118300' class=' answer'><span>Activity based techniques including activity based budgeting focus on the outputs of a process rather than the input to the process. This approach provides a clear framework for understanding the link between costs and the level of activity. It allows the ranking of activities and the determination of how limited resources should be allocated across competing activities.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28719[]' id='answer-id-118301' class='answer   answerof-28719 ' value='118301'   \/><label for='answer-id-118301' id='answer-label-118301' class=' answer'><span>ABB systems present costs under functional headings i.e. the emphasis is on the nature of the cost. The weakness of this approach is that it gives little indication of the link between the level of activity and the cost incurred.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28719[]' id='answer-id-118302' class='answer   answerof-28719 ' value='118302'   \/><label for='answer-id-118302' id='answer-label-118302' class=' answer'><span>The approach under an activity based system is to make arbitrary cuts in order to meet overall financial targets.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='checkbox' name='answer-28719[]' id='answer-id-118303' class='answer   answerof-28719 ' value='118303'   \/><label for='answer-id-118303' id='answer-label-118303' class=' answer'><span>Activity based budgeting allows the identification of value added and non-value added activities and ensures that cuts are made to non-value added activities. ABB is also useful for review of capacity utilization.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-26' style=';'><div id='questionWrap-26'  class='   watupro-question-id-28720'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>26. <\/span>TP makes wedding cakes that are sold to specialist retail outlets which decorate the cakes according to the customers\u2019 specific requirements. The standard cost per unit of its most popular cake is as follows: The general market prices at the time of purchase for Ingredient A and Ingredient B were $23 per kg and $20 per kg respectively. <br \/>\r<br><br><img decoding=\"async\" width=379 height=365 src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2018\/exams\/CIMAPRO15-P01-X1-ENG%20V8.files\/image011.jpg\" v:shapes=\"_x0000_i1038\"><br><br \/>\r<br>TP operates a JIT purchasing system for ingredients and a JIT production system; therefore, there was no inventory during the period. Prepare a statement which reconciles the flexed budget material cost and the actual material cost. Your statement should include the material price planning variances, and the operational variances including material price, material mix and material yield. <br \/>\r<br>What was the material price planning variance for ingredient A?<\/div><input type='hidden' name='question_id[]' id='qID_26' value='28720' \/><input type='hidden' id='answerType28720' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28720[]' id='answer-id-118304' class='answer   answerof-28720 ' value='118304'   \/><label for='answer-id-118304' id='answer-label-118304' class=' answer'><span>The Material price planning variance C Ingredient A was $73 000 F<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28720[]' id='answer-id-118305' class='answer   answerof-28720 ' value='118305'   \/><label for='answer-id-118305' id='answer-label-118305' class=' answer'><span>The Material price planning variance C Ingredient A was $72 000 F<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28720[]' id='answer-id-118306' class='answer   answerof-28720 ' value='118306'   \/><label for='answer-id-118306' id='answer-label-118306' class=' answer'><span>The Material price planning variance C Ingredient A was $71 000 F<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28720[]' id='answer-id-118307' class='answer   answerof-28720 ' value='118307'   \/><label for='answer-id-118307' id='answer-label-118307' class=' answer'><span>The Material price planning variance C Ingredient A was $75 000 F<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-27' style=';'><div id='questionWrap-27'  class='   watupro-question-id-28721'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>27. <\/span>TP makes wedding cakes that are sold to specialist retail outlets which decorate the cakes according to the customers\u2019 specific requirements. The standard cost per unit of its most popular cake is as follows: The general market prices at the time of purchase for Ingredient A and Ingredient B were $23 per kg and $20 per kg respectively. TP operates a JIT purchasing system for ingredients and a JIT production system; therefore, there was no inventory during the period. <br \/>\r<br><br><img decoding=\"async\" width=379 height=365 src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2018\/exams\/CIMAPRO15-P01-X1-ENG%20V8.files\/image011.jpg\" v:shapes=\"_x0000_i1039\"><br><br \/>\r<br>What was the material price planning variance for ingredient B?<\/div><input type='hidden' name='question_id[]' id='qID_27' value='28721' \/><input type='hidden' id='answerType28721' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28721[]' id='answer-id-118308' class='answer   answerof-28721 ' value='118308'   \/><label for='answer-id-118308' id='answer-label-118308' class=' answer'><span>The material price planning variance C Ingredient B was $54 000 F<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28721[]' id='answer-id-118309' class='answer   answerof-28721 ' value='118309'   \/><label for='answer-id-118309' id='answer-label-118309' class=' answer'><span>The material price planning variance C Ingredient B was $64 000 F<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28721[]' id='answer-id-118310' class='answer   answerof-28721 ' value='118310'   \/><label for='answer-id-118310' id='answer-label-118310' class=' answer'><span>The material price planning variance C Ingredient B was $57 000 F<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-28721[]' id='answer-id-118311' class='answer   answerof-28721 ' value='118311'   \/><label for='answer-id-118311' id='answer-label-118311' class=' answer'><span>The material price planning variance C Ingredient B was $59 000 F<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div style='display:none' id='question-28'>\n\t<div class='question-content'>\n\t\t<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/plugins\/watupro\/img\/loading.gif\" width=\"16\" height=\"16\" alt=\"Loading...\" title=\"Loading...\" \/>&nbsp;Loading...\t<\/div>\n<\/div>\n\n<br \/>\n\t\n\t\t\t<div class=\"watupro_buttons flex \" id=\"watuPROButtons959\" >\n\t\t  <div id=\"prev-question\" style=\"display:none;\"><input type=\"button\" value=\"&lt; 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