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BA2 Updated Exam Dumps [2021] Practice Valid Exam Dumps Question
NEW QUESTION 14
In an integrated cost and financial accounting system, the accounting entries for the cost of production units completed in the period would be:
- A. Debit: Finished goods control accountCredit: Work in progress control account
- B. Debit: Cost of sales accountCredit: Finished goods control account
- C. Debit: Finished goods control accountCredit: Cost of sales account
- D. Debit: Work in progress control accountCredit: Finished goods control account
Answer: A
NEW QUESTION 15
Which of the following is the LEAST appropriate basis on which to apportion the insurance costs of plant and machinery:
- A. Original cost
- B. Replacement cost
- C. Net book value
- D. Machine hours
Answer: D
NEW QUESTION 16
A company uses standard absorption costing. Budgeted and actual data for the latest period are as follows.
What was the production overhead absorption rate per unit?
- A. S35
- B. S27
- C. S29
- D. $21
Answer: B
NEW QUESTION 17
Which of the following entries to record the direct and indirect labour costs in the month are correct?
The correct entry is
- A. D
- B. B
- C. A
- D. C
Answer: D
NEW QUESTION 18
Refer to the exhibit.
SP, a manufacturing company, uses a standard costing system. The standard variable production overhead cost is based on the following budgeted figures for the year:
During the month of September, 5,300 actual hours were worked and 5,600 standard hours of output were produced. Total variable production overhead costs in September were $8,600.
What was the variable overhead efficiency variance in September?
- A. $450 favorable
- B. $650 favorable
- C. $650 adverse
- D. $450 adverse
Answer: A
NEW QUESTION 19
Which THREE of the following costs would normally be classified as semi-variable?
- A. Telephone costs
- B. Advertising costs
- C. Salary of a sales executive paid a basic salary and a bonus based on sales level
- D. Royalties paid per unit produced
- E. Wages of a waitress paid a fixed rate per hour
- F. Cost of renting a photocopier which is a fixed rental fee plus a charge per copy made
Answer: A,C,F
NEW QUESTION 20
Refer to the exhibit.
The following standard cost information relates to the production department of BE Ltd.
The actual data for the month of March was as follows:
What is the direct labour efficiency variance (to the nearest whole number)?
- A. £6,406 favourable
- B. £6,250 favourable
- C. £6,250 adverse
- D. £6,406 adverse
Answer: B
NEW QUESTION 21
Refer to the exhibit.
The following data relates to Department A within a business unit.
The overhead absorption rate per direct labour hour for Department A is:
Give your answer to 2 decimal places.
Answer:
Explanation:
£7.93
NEW QUESTION 22
A project is about to be launched. Two of the three possible outcomes and their associated probabilities are as follows:
The remaining possible outcome is a $70,000 gain.
What is the correct calculation of the expected value of the project?
- A. ($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) + ($25,000 x 0.2)
- B. ($30,000 + $70,000 - $25,000} x (0.7 + (1.0 - (0.2 + 0.7)) + 0.2)
- C. ($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) - ($25,000 x 0.2)
- D. ($30,000 + $70;000 - $25,000) / 3
Answer: A
NEW QUESTION 23
Refer to the exhibit.
Xpert Ltd uses a standard costing system and therefore values all inventory at standard cost. During period 7, the price paid for material 'Z' was £2 per kg more than the standard price.
The following information for material 'Z' relates to period 7:
What was the material price variance for 'Z' in period 7?
- A. £500 adverse
- B. £40 adverse
- C. £400 adverse
- D. £2 adverse
Answer: A
NEW QUESTION 24
The managing director of a small expanding company has asked you to discuss the positioning of management accounting within his organization.
Which of the following would you suggest is an advantage of the management accountant taking on a business partnering role within the organization?
(i) It is easier for the management accountant to remain objective in decision making situations (ii) The management accountant is an integral part of the business (iii) It is easier to build strong relationships between the managers and the management accountant
- A. (i) only
- B. (i) and (ii)
- C. (ii) and (iii)
- D. (i), (ii) and (iii)
Answer: C
NEW QUESTION 25
Refer to the exhibit.
A company issued its production budget based on an anticipated output of 800 units. Actual output was 1000 units. The details of the costs are shown below:
The budget expenditure variance was:
- A. £5,000 favourable
- B. £5,000 adverse
- C. £1,000 favourable
- D. £3,000 adverse
Answer: C
NEW QUESTION 26
In a manufacturing company which produces a range of products, the production manager's salary would be classified as A.
- A. Indirect expense
- B. Direct labour cost
- C. Indirect labour cost
- D. Direct expense
Answer: C
NEW QUESTION 27
Refer to the exhibit.
X Enterprises runs a private nursing home for the elderly. The company are concerned that bed occupancy rates have been falling over the past 2 years with a consequential effect on profit. They have drawn up a budget for next year as follows:
The nursing home currently charges $90 per patient day.
The nursing home operates at 7,500 patient days per year. In an effort to increase occupancy rates the company are proposing to reduce the current price by 10% and increase spending on advertising by $10,000 each year. What effect will this have on the margin of safety?
- A. Reduce the margin of safety by 622 days
- B. Increase the margin of safety by 622 days
- C. Reduce the margin of safety by 1,178 days
- D. Increase the margin of safety by 1,178 days
Answer: C
NEW QUESTION 28
A tomato producer is investigating the correlation between the height of his plants and the size of the tomatoes.
He has tallied up his height results and produced this table.
Using the information provided, find the median and modal class and correctly select these answers from the list.
- A. Modal class = 30<x<40
- B. Median = 30<x<40
- C. Median = 40<x<50
- D. Modal class = 40>x>50
Answer: A,B
NEW QUESTION 29
Every month for the last three years, a company has recorded the number of new customers for that month.
The data have been summarised and grouped as follows:
What is the arithmetic mean of the number of new customers per month?
- A. 8.50
- B. 6.22
- C. 6.50
- D. 6.38
Answer: A
NEW QUESTION 30
Refer to the exhibit.
The budgetary control report for the latest period shows the following. Variances in brackets are adverse.
Which THREE of the following statements can definitely be inferred from this control report?
- A. The total expenditure variance is adverse
- B. The sales volume contribution variance is adverse
- C. The direct labour rate variance is adverse
- D. The selling price variance is favourable
- E. The variable overhead efficiency variance is adverse
- F. The direct material price variance is favourable
Answer: A,B,D
NEW QUESTION 31
Refer to the exhibit.
Budget information for 'Cast Engineering' is as follows:
The budget cost allowance for an output of 1,300 units is:
Answer:
Explanation:
£52490
NEW QUESTION 32
A company uses an integrated accounting system and absorbs production overhead using a predetermined rate of $6 per machine hour.
Last period a total of 25,500 machine hours were worked and the actual production overhead incurred was
$158,000.
The accounting entries for the absorption of production overhead for the period would be:
- A. Debit: work in progress control account $153,000
Credit: production overhead control account $153,000 - B. Debit: production overhead control account $153,000
Credit: work in progress control account $153,000 - C. Debit: production overhead control account $158,000
Credit: work in progress control account $158,000 - D. Debit: work in progress control account $158,000
Credit: production overhead control account $158,000
Answer: A
NEW QUESTION 33
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