Download CIMA.CIMAPRO17-BA2-X1-ENG.TestKing.2020-02-19.36q.tqb

Vendor: CIMA
Exam Code: CIMAPRO17-BA2-X1-ENG
Exam Name: E3 - Strategic Management Question Tutorial
Date: Feb 19, 2020
File Size: 864 KB

Demo Questions

Question 1
Which of the following is a relevant cost?
  1. A sunk cost
  2. A committed cost
  3. An incremental cost
  4. A historical cost
Correct answer: C
Explanation:
Reference: https://www.acowtancy.com/textbook/cima-p1-2015/c1-relevant-costing/concept-of-relevant-costing/notes
Reference: https://www.acowtancy.com/textbook/cima-p1-2015/c1-relevant-costing/concept-of-relevant-costing/notes
Question 2
Which of the following would NOT require taking into account the time value of money?
  1. Deciding to make a long-term investment in a project on the basis of its payback period.
  2. Selecting an investment project on the basis that it has a positive net present value (NPV).
  3. Calculating the present value of a five-year annuity.
  4. Taking a long-term investment decision on the basis of the project’s internal rate of return (IRR).
Correct answer: C
Explanation:
Reference: https://www.acowtancy.com/textbook/acca-fm/d1-investment-appraisal-techniques/npv/notes
Reference: https://www.acowtancy.com/textbook/acca-fm/d1-investment-appraisal-techniques/npv/notes
Question 3
A small airport’s management accountant has prepared the following management report on the performance of its four retail outlets. 
  
Which retail outlet has the highest contribution per square metre?
  1. Outlet A
  2. Outlet B
  3. Outlet C
  4. Outlet D
Correct answer: C
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