Free Access CIMA.CIMAPRO19-P02-1.v2022-02-08.q71 Practice Test (Page 11)

Question 46

A manager must decide which one of three projects should be implemented. For each project the possible outcomes and their associated probabilities can be estimated reliably. The manager has decided to make the decision based solely on which project has the highest expected value of profit.
Which of the following statements are correct?
Select ALL that apply.

A.The manager will select the project with the highest of all of the possible outcomes.

B.The manager will select the project with the lowest standard deviation.

C.The decision is characterized by uncertainty and the manager is risk seeking.

D.The range of possible outcomes for each project is not important to the manager.

E.The decision is characterized by risk and the manager is risk neutral.

Question 47

Place the correct category of Value Chain activity against each of the activities described below.

Question 48

Which TWO of the following statements are correct?

A.It is worthwhile for a company to sell further units when the marginal revenue is greater than the marginal cost.

B.Loss leadership pricing is appropriate for a new product which is not part of a range of products.

C.Demand functions can be predicted accurately and the relationship between price and quantity demanded is always constant.

D.Premium pricing is possible when there is a measure of product or service differentiation.

E.Price is the only factor affecting the demand for products and services.

Question 49

The following data are available for a division for the latest period.

What is the division's residual income for the period?

A.12.50%

B.$36,000

C.$3,000

D.31.25%

Question 50

Which TWO of the following conditions are necessary for a learning curve to apply?

A.There must be regular breaks in production.

B.The process must be complex.

C.Production must be machine intensive.

D.The process must be simple.

E.Production must be labor intensive.

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Question 46

Question 47

Question 48

Question 49

Question 50

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