Question No 42:
Which of the following statements is correct?
A. Risk can be quantified and probabilities can be assigned reliably to the possible outcomes.
B. Uncertainty cannot be quantified and probabilities can be assigned reliably to the possible outcomes.
C. Risk cannot be quantified and probabilities cannot be assigned reliably to the possible outcomes.
D. Uncertainty can be quantified and probabilities can be assigned reliably to the possible outcomes.
Answer: A
Thursday 28 April 2016
Thursday 21 April 2016
Cima P2 Exam Question 41
Question No 41:
A manufacturing company has recently introduced a Total Quality Management (TQM) system. The company has invested heavily in the education and training of its staff, in addition to implementing new product design engineering. There is a plan to sample units from each batch of products manufactured to test for errors, although this has not yet been implemented due to budget constraints.
The company is experiencing high levels of customer complaints, with many faulty units being returned by the customer for refund or replacement. Sales revenue has fallen recently, mainly due to negative press coverage linked to dissatisfied customers.
Select the statement MOST likely to apply.
A. The high level of external failure costs is the result of a lack of expenditure on prevention costs.
B. The high level of internal failure costs is the result of a lack of expenditure on appraisal costs.
C. The high level of external failure costs is the result of a lack of expenditure on appraisal costs.
D. The high level of internal failure costs is the result of a lack of expenditure on prevention costs.
Answer: C
A manufacturing company has recently introduced a Total Quality Management (TQM) system. The company has invested heavily in the education and training of its staff, in addition to implementing new product design engineering. There is a plan to sample units from each batch of products manufactured to test for errors, although this has not yet been implemented due to budget constraints.
The company is experiencing high levels of customer complaints, with many faulty units being returned by the customer for refund or replacement. Sales revenue has fallen recently, mainly due to negative press coverage linked to dissatisfied customers.
Select the statement MOST likely to apply.
A. The high level of external failure costs is the result of a lack of expenditure on prevention costs.
B. The high level of internal failure costs is the result of a lack of expenditure on appraisal costs.
C. The high level of external failure costs is the result of a lack of expenditure on appraisal costs.
D. The high level of internal failure costs is the result of a lack of expenditure on prevention costs.
Answer: C
Thursday 14 April 2016
Cima P2 Exam Question 40:
Question No 40:
A company makes three products, E, F and G. Total overheads for the year are expected to be $1.2 million, with the following split between cost pools: Cost driver information has been estimated as follows:
The company plans to make 10,000 units of product E in the year, with an expected direct cost of $0.60 per unit. This annual production of product E is expected to require 20 quality inspections, 28 purchase requisitions, and 400 kilogrammes of materials.
What is the overhead cost per unit of product E?
A. $0.10
B. $0.70
C. $3.57
D. $4.17
Answer: A
A company makes three products, E, F and G. Total overheads for the year are expected to be $1.2 million, with the following split between cost pools: Cost driver information has been estimated as follows:
The company plans to make 10,000 units of product E in the year, with an expected direct cost of $0.60 per unit. This annual production of product E is expected to require 20 quality inspections, 28 purchase requisitions, and 400 kilogrammes of materials.
What is the overhead cost per unit of product E?
A. $0.10
B. $0.70
C. $3.57
D. $4.17
Answer: A
Sunday 10 April 2016
CIMA: Senior Leaders Struggle to Make Right Decisions
Approximately 72 percent of companies have admitted at least one strategic initiative to stop working in the last three years, due to defects in their decision making.
This is according to a recent study by the Institute of Management Accountants (CIMA) and the American Institute of Certified Public Accountants (AICPA), which states that business leaders are struggling to make the right decisions.
Research suggests that information overload, excessive bureaucracy, lack of trust and incentives that are not aligned with the objectives, are all elements that contribute to do business around the world a wrong decision.
"Connecting the dots: the decision for a new era", the report examines a number of board-level executives in large organizations in 16 countries.
He showed that not only the leaders admit doing wrong decision, 80 percent say the wrong information is used to make strategic decisions, with 42 percent of companies admit that their organization has lost a competitive advantage because "were slow to make decisions.
Information overload has been found to be one of the areas where top leaders are struggling with 36 percent saying no deal here.
About 86 percent of organizations high performance and evaluate the management information they need, focusing on key value drivers of the business model.
Almost a third of executives say the biggest obstacle to more decision to make decision to coordination problems caused by compartmentalized and bureaucracy.
Charles Tilley, CEO of CIMA, said: "Bad decisions make a bad deal, so these results are a cause of great concern.
"Above all, leaders need to think in an integrated manner This means it has a clearly defined business model and all decisions about return;. Collect and quickly analyze all relevant information from all parts of the company , and it focuses on key performance indicators rather than instinct or hearsay ".
This is according to a recent study by the Institute of Management Accountants (CIMA) and the American Institute of Certified Public Accountants (AICPA), which states that business leaders are struggling to make the right decisions.
Research suggests that information overload, excessive bureaucracy, lack of trust and incentives that are not aligned with the objectives, are all elements that contribute to do business around the world a wrong decision.
"Connecting the dots: the decision for a new era", the report examines a number of board-level executives in large organizations in 16 countries.
He showed that not only the leaders admit doing wrong decision, 80 percent say the wrong information is used to make strategic decisions, with 42 percent of companies admit that their organization has lost a competitive advantage because "were slow to make decisions.
Information overload has been found to be one of the areas where top leaders are struggling with 36 percent saying no deal here.
About 86 percent of organizations high performance and evaluate the management information they need, focusing on key value drivers of the business model.
Almost a third of executives say the biggest obstacle to more decision to make decision to coordination problems caused by compartmentalized and bureaucracy.
Charles Tilley, CEO of CIMA, said: "Bad decisions make a bad deal, so these results are a cause of great concern.
"Above all, leaders need to think in an integrated manner This means it has a clearly defined business model and all decisions about return;. Collect and quickly analyze all relevant information from all parts of the company , and it focuses on key performance indicators rather than instinct or hearsay ".
Thursday 7 April 2016
Cima P2 Exam Question 39
Question No 39:
A company has three divisions, each of which is an investment centre. The divisional managers' performance is assessed using return on investment (ROI). A higher ROI will result in a higher bonus for the divisional manager. The company's cost of capital is 15%.
For the forthcoming year each divisional manager has one investment opportunity available as follows:
The manager(s) of which division(s) will proceed with their respective investment opportunity?
A. Division 1 and Division 3
B. Division 2 and Division 3
C. Division 3 only
D. Division 1 only
Answer: B
A company has three divisions, each of which is an investment centre. The divisional managers' performance is assessed using return on investment (ROI). A higher ROI will result in a higher bonus for the divisional manager. The company's cost of capital is 15%.
For the forthcoming year each divisional manager has one investment opportunity available as follows:
The manager(s) of which division(s) will proceed with their respective investment opportunity?
A. Division 1 and Division 3
B. Division 2 and Division 3
C. Division 3 only
D. Division 1 only
Answer: B
Subscribe to:
Posts (Atom)