MANAGEMENT INFORMATION 2025
ICAEW EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
Calculation for material purchases budget - ANSWER-= material usage budget +
closing inventory - opening inventory
Material usage budget - ANSWER-budget product quantity x # kgs required to produce
a product
If selling price is fixed to generate a margin of sales of 33 ½ %. What is the Cost of
Sales calculation? - ANSWER-Sales x ⅔. Because ⅓ is profit and ⅔ is cost of sales
What does the master budget compose of? - ANSWER-Budgeted:
- P&L
- BS
-Cash flow (cash budget)
The cash budget is - ANSWER-a detail budget of cash inflows and outflows
incorporating both revenue and capital iteams
Coefficient of determination must always fall between - ANSWER-0 and +1
The correlation coefficient must always fall between - ANSWER--1 and +1.
Four V's of Big Data - ANSWER-- Volume
- Velocity
- Variety
- Veracity
Working Capital equation - ANSWER-= current assets - current liabilities
= Inventory + Receivables + Cash - Payables
Profitability - ANSWER-For long-term growth and return to investors
Liquidity - ANSWER-For short-term survival. i.e ability to pay next month's wage bill
Advantages of short-term finances - ANSWER-- Relatively cheap= shorter period of risk
exposure to lenders.
- Flexible= a bank overdraft. As only used when needed
ICAEW EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
Calculation for material purchases budget - ANSWER-= material usage budget +
closing inventory - opening inventory
Material usage budget - ANSWER-budget product quantity x # kgs required to produce
a product
If selling price is fixed to generate a margin of sales of 33 ½ %. What is the Cost of
Sales calculation? - ANSWER-Sales x ⅔. Because ⅓ is profit and ⅔ is cost of sales
What does the master budget compose of? - ANSWER-Budgeted:
- P&L
- BS
-Cash flow (cash budget)
The cash budget is - ANSWER-a detail budget of cash inflows and outflows
incorporating both revenue and capital iteams
Coefficient of determination must always fall between - ANSWER-0 and +1
The correlation coefficient must always fall between - ANSWER--1 and +1.
Four V's of Big Data - ANSWER-- Volume
- Velocity
- Variety
- Veracity
Working Capital equation - ANSWER-= current assets - current liabilities
= Inventory + Receivables + Cash - Payables
Profitability - ANSWER-For long-term growth and return to investors
Liquidity - ANSWER-For short-term survival. i.e ability to pay next month's wage bill
Advantages of short-term finances - ANSWER-- Relatively cheap= shorter period of risk
exposure to lenders.
- Flexible= a bank overdraft. As only used when needed
