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BA2 – Fundamentals of Management Accounting

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Showing 4–6 of 10 questions

Question 4

The possible returns and associated probabilities of two independent projects are as follows:

It has been decided that both projects are to be launched.

Which TWO of the following statements are correct? (Choose two.)

Select all that apply, then click Submit answer.

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    The expected value of the total return is $41,500 gain.
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    The probability of the total return being a loss is 0.10.
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    The probability of making a total return of exactly $5,000 gain is 0.02.
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    The probability of the total return being a gain is less than 1.00.
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    The expected value of the total return is $40,000 gain.
Question 5

In a company that manufactures many different products on the same production line, which TWO of the following would NOT be classified as indirect production costs? (Choose two.)

Select all that apply, then click Submit answer.

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    Salary paid to the factory manager.
  • ○

    Factory rent.
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    Maintenance costs for the company’s only production line.
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    Commissions paid to the sales team.
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    Royalties paid to the designers of the products.
Question 6

A company’s policy is to hold closing inventory each month equal to 10% of the next month’s budgeted sales volume. The budgeted sales volumes of product Q for months 1 and 2 are 1,660 units and 2,300 units respectively.

The production budget for product Q for month 1 is:

Select an option, then click Submit answer.

  • ○

    1,596 units
  • ○

    1,494 units
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    1,724 units
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    1,890 units