Page 275 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Supplementary objective test questions

1.10 Which TWO of the following would not normally be associated with the
operation of a Just In Time (JIT) inventory control system?

Not part of JIT

Standard working patterns for direct labour

Predictable demand

Minimisation of work-in-progress

Unpredictable supplier lead times

CHAPTERS 4 TO 6 – DECISION MAKING

2.1 Which of the following information is required when deciding (purely on
financial grounds) whether or not to further process a joint product?

A The value of the common process costs

B The method of apportioning the common costs between joint products

C The sales value of the joint products at the separation point

D The running costs for the common process

2.2 Which of the following is not normally considered to be a relevant cost for
decision making?

A Incremental fixed costs

B Unpaid committed costs

C Project decommissioning costs

D Project investment costs

2.3 A project requires 10,000 kgs of material that is currently held in inventory.

The inventory is regularly used elsewhere in the business for a project that
makes a contribution of $2 per kg. The material could be bought on the external
market for $6 per kg or sold for $3 per kg.

The total cost of using the material in the project would be
$_________________

(Your answer should be rounded down to the nearest $)

271