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NEW QUESTION: 1
When accounting for a finance lease under IAS 17 Leases, which TWO of the following are recognised in the statement of profit or loss?
A. Depreciation of the leased asset
B. Finance cost element of the lease payments
C. Lease payments paid
D. Capital repayment element of the lease payments
E. Lease payments payable
Answer: A,B

NEW QUESTION: 2

A. Option D
B. Option A
C. Option B
D. Option C
Answer: C

NEW QUESTION: 3

A. Option D
B. Option A
C. Option F
D. Option B
E. Option C
F. Option E
Answer: D

NEW QUESTION: 4
Your project has a budget of $75,000 and is 60 percent complete though are supposed to be 75 percent done at this time. You have spent $50,000 to reach this point of the project. If management wanted to know your cost variance for this project what formula would you want Microsoft Project to calculate for you?
A. Earned value/actual cost
B. Earned value - budget at completion
C. Earned value - planned value
D. Earned value - actual cost
Answer: D
Explanation:
You would want Microsoft Project through, Project Center, to calculate and show the results of your earned
value minus the actual costs. In this instance, your earned value is $45,000 and your actual cost is $50,000.
Therefore, cost variance will be -$5,000. Answer option C is incorrect. Earned value - planned value is the
formula for finding the schedule variance using earned value management.
Answer option B is incorrect. Earned value/actual cost is the formula for finding the cost performance index.
Answer option D is incorrect. Earned value - budget at completion is the formula for finding the project
variance at the end of the project.
What is CV?
Cost variance (CV) is a measure of cost performance on a project. The variance notifies if costs are higher
than budgeted or lower than budgeted. The cost variance is calculated based on the following formula:
CV = Earned Value (EV) - Actual Cost (AC)
A positive value means that spending is less than budgeted, whereas a negative value indicates that costs
are higher than originally planned for the project.