Cima C03 practice questions 2015

1
C03
Fundamentals of Business Mathematics
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C03
Fundamentals of Business Mathematics
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C03
Fundamentals of Business Mathematics
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Mathematics in first attempt By the help of
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How CIMA benefit your Business

• Analysis - Understanding the history behind
  numbers and use it to make business decisions

• Strategy Using the insight from analysis to
  help formulate business strategy to create wealth
  and shareholder value.

• Risk - The application of analytical skills to
  observe business processes end end a pair
  identify and manage risks.

• Planning using accounting techniques to plan
  and budget.

• Communication knowing what information
  management needs and explaining the numbers to
  non-financial managers.

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Question No 1
A retailer buys a box of a product, which
nominally contains Q units. The planned selling
price of each unit is P. If both P and Q have
been rounded to 10, then the maximum rounding
error in total revenue is
A. 10 B. 20 C. 21 D. 01Q x 01P
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Question No 2
The telephone costs of a company last year were
10,000, including Value Added Tax (VAT) at
175. It has been decided to allocate 60 of
these telephone costs, excluding VAT, to Central
Administration and to allocate 30 of the
remainder, excluding VAT, to Finance. The
telephone costs (to the nearest ) to be
allocated to Finance will be closest to
A. 10 B. 20 C. 21 D. 01Q x 01P
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Question No 3
The following formula is used in the financial
analysis of dividends R (V/P)G When the
formula is rearranged, with P in terms of the
other variables, P is equal to
A. (R/V)-G B. (R-G)/V C. (V/R)-G D. V/R-G
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Question No 4
A companys market value has fallen from 32
billion to 2 billion in four years. The average
annual percentage decline in market value is
closest to
A. 20. B. 40. C. 50. D. 100.
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Question No 5
If 3x 2y 6 and x 2y 2. The solution, in
the form (x,y), to the above simultaneous
equations is
CBA Model Question Paper CO3
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Question No 6
The estimated total cost of each unit of a
product is 12 ( 1), and the estimated selling
price of each unit is 20 ( 3). The estimated
profit per unit will be
A. 8 ( 4) B. 8 ( 3) C. 8 ( 2) D. 8
( 1)
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Question No 7
A traders weekly costs, TC, are less than or
equal to 100. Weekly revenue, R, is a minimum of
120. Which ONE of the following statements is
true?
A. TC lt 100 and R gt 120 and R gt TC B. TC
100 and R 120 and TC gt R C. TC 100 and R
gt 120 and R lt TC D. TC 100 and R 120 and
R gt TC
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Question No 8
In a group of 100 players, 30 are male, 55 are at
pro level, and 6 of the males are at beginner
level. A player chosen at random is female. What
is the probability that she is not at pro level.
A. 80 B. 56 C. 44 D. 20
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Question No 9
Three people are carrying out independent
functions during an internal audit. It is known
that in each of the three separate areas being
investigated there is a serious error. From past
experience, it is estimated that the
(independent) chances of the individuals finding
the serious error in their area are 08, 07 and
06. The probability that at least one of the
serious errors will be found is
A. (08 x 03 x 04) (02 x 07 x 04) (02 x
03 x 06) B. 1 (02 x 03 x 04) C. 1 (08
x 07 x 06) D. none of the above.
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Question No 10
The number of daily complaints to a railway
company has an average (arithmetic mean) of 12
and a standard deviation of 3 complaints. The
coefficient of variation, measured as a
percentage, is therefore
A. 025. B. 4. C. 25. D. 400.
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C03
Fundamentals of Business Mathematics
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