CIMA Updated BA2 Exam Questions and Answers by bear

A company wishes to achieve a 20% return on the capital of $937,500 invested in the company. Total costs for the next period are budgeted to be $1,250,000.

The standard cost for product P is $11 per unit.

In order to achieve the required return on investment the selling price per unit of product P must be:

Give your answer to 2 decimal places.

Refer to the exhibit.

A company has the following budget information for next year:

The raw materials usage budget for the years is:

You are put in charge of a new, independent factory. The products you produce are cheap to produce but the profit margin is small. Maintaining low costs and maximum efficiency is key.

You are concerned that certain parts of the production line are producing excess waste and damaging profits.

Which type of cost centre would be most useful in this situation?

A manufacturing company has four production departments. Overheads have been apportioned between them as follows:

It takes each department 4 hours, 4 hours, 2 hours and 3 hours respectively to produce the company's only product. The company recovers costs on the basis of labour hours. They plan to produce 6,000 units

What will the overhead absorption rate per unit be in £'s?

Select the correct answer from the choices below