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Latest IIA-ACCA Practice Questions BY Craig

Question 1

Which of the following is useful for forecasting the required level of inventory?

1. Statistical modeling.

2. Information about seasonal variations in demand.

3. Knowledge of the behavior of different business cycles.

4. Pricing models linked to seasonal demand.

  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1, 2, and 3 only
  • D. 1, 2, 3, and 4
Question 2

A multinational organization has multiple divisions that sell their products internally to other divisions. When selling internally, which of the following transfer prices would lead to the best decisions for the organization?

  • A. Full cost
  • B. Full cost plus a markup.
  • C. Market price of the product
  • D. Variable cost plus a markup