Get CIMAPRA17-BA2-1 Exam Practice Questions - Real and Updated

Refer to the Exhibit.

CM has produced the following budget information for next year:

The opening receivables balance represents 2 months sales. It is expected that the same level of sales will continue at an even rate throughout the year.

In an effort to improve receivables collection periods it is proposed to offer a discount of 5% for payment by cash. It is expected that 20% of customers will pay by cash. Of the remaining 80% credit sales, 40% will be settled within 1 month and 60% are expected to settle within 2 months.

What are the budgeted cash receipts from cash and credit sales in the year?

When making a decision, for a cost or revenue to be classified as "relevant" it must be:

(a) Incremental

(b) Notional

(c) Cash

(d) Future

Refer to the exhibit.

The following budget and actual data are available for last period.

The sales price variance for last period was

PQR Manufacturing Ltd. has 3,000,000 of fixed costs for the forthcoming period. The company produces a single product 'X', which has a selling price of 75 per unit and total cost of 50.

75% of the total cost represents variable costs.

What are the break-even units?

A fixed budget is: