CIMA CIMAPRO19-P02-1 Quiz 2 Topic 1 Questions 6-10

Question: 1

How does beyond budgeting NOT help to resolve the weaknesses of traditional budgeting? Select ALL that apply.

AManagers are set goals and targets to achieve rather than abiding by strict budgets and variances.

BManagers have a much larger scope of business goals that when achieved, will increase shareholder value.

CManagers are given more freedom and control over their business units under Beyond budgeting.

DManagers focus on keeping costs low in the short term to ensure maximised profits.

EManagers are given incentives to meet or undercut budgets.

FManagers are encouraged to designate responsibility to others to lessen their workload so they may concentrate on important tasks.

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Question: 2

Product WB currently sells for $13 per unit. Annual demand at that price is 20,000 units. If the price increases to $15, the annual demand falls by 500 units.

What is the formula for the demand curve?

AQ = a - bP

BP = f(Q).

CQd = a -- b(P

DP = a -b(Q)

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Question: 3

An organization is competing in the high technology market. It sets a high sales price for its products initially to target the early adopters, and then the price is gradually reduced.

This pricing strategy is known as:

AMarket skimming

BPenetration pricing

CPremium pricing

DLoss leader pricing

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Question: 4

How does beyond budgeting NOT help to resolve the weaknesses of traditional budgeting? Select ALL that apply.

AManagers are set goals and targets to achieve rather than abiding by strict budgets and variances.

BManagers have a much larger scope of business goals that when achieved, will increase shareholder value.

CManagers are given more freedom and control over their business units under Beyond budgeting.

DManagers focus on keeping costs low in the short term to ensure maximised profits.

EManagers are given incentives to meet or undercut budgets.

FManagers are encouraged to designate responsibility to others to lessen their workload so they may concentrate on important tasks.

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Question: 5

An organization's transfer pricing system involves:

* The transferring division receiving $20 per unit; an amount equal to its variable costs.

* The receiving division paying an additional $30,000 every month to the transferring division.

Which transfer pricing system is the organization using?

ADual transfer prices

BTwo part tariff

CCost-plus

DVariable cost plus opportunity cost

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CIMA CIMAPRO19-P02-1 Quiz:2 Topic:1 Questions:6-10