PracticeVideosBlogFlashcardsEspañol
All Practice Exams

100+ Free CA ANZ Core 5 Practice Questions

CA Program Core 5: Strategy and Business Performance practice questions are available now; exam metadata is being verified.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately
Not published Pass Rate
100+ Questions
100% Free
1 / 100
Question 1
Score: 0/0

A make-or-buy decision shows the external purchase price is $18 per unit. Internal variable cost is $14 and allocated fixed overhead is $6, of which $2 is avoidable if production stops. What is the relevant internal cost per unit for comparison?

A
B
C
D
to track
Same family resources

Explore More Chartered Accountants ANZ (CA ANZ)

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

CA Program — Core 1: Ethics and Sustainability (CA ANZ)

Practice Questions

CA Program — Core 2: Risk, Technology and Artificial Intelligence (CA ANZ)

Practice Questions

CA Program — Core 3: Financial Accounting and Reporting (FAR) (CA ANZ)

Practice Questions

CA Program — Core 4: Tax (Australia) (CA ANZ)

Practice Questions

CA Program — Core 4: Tax (New Zealand) (CA ANZ)

Practice Questions

CA Program — Elective: Advanced Tax (Australia) (CA ANZ)

Practice Questions
2026 Statistics

Key Facts: CA ANZ Core 5 Exam

Core 5

CA Program Subject

CA ANZ Course Descriptions

CACC2504

Subject Code

CA ANZ Subject Outline

9 weeks

Study Period

CA ANZ Course Descriptions

100

Free Practice Questions

OpenExamPrep

Quizzes + assignment

Assessment Method

CA ANZ Assessment Information

GradDipCA

Qualification

CA ANZ CA Program

CA ANZ Core 5: Strategy and Business Performance (CACC2504) is a 9-week GradDipCA subject focused on management accounting, performance measurement, and business strategy. It is one of the CA Program subjects assessed through online quizzes and a high-stakes assignment rather than a final invigilated exam, so CA ANZ does not publish a question count, raw pass mark, or subject pass rate. Its quantitative content (CVP, costing, ABC, variance analysis, NPV/IRR, ROI, residual income) and strategy frameworks (Porter, SWOT/PESTLE, value chain) make it strong knowledge-prep territory. This free set provides 100 multiple-choice questions to reinforce those concepts.

Sample CA ANZ Core 5 Practice Questions

Try these sample questions to test your CA ANZ Core 5 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1A product sells for $50 per unit with variable cost of $30 per unit and total fixed costs of $120,000. How many units must be sold to break even?
A.2,400 units
B.4,000 units
C.6,000 units
D.3,000 units
Explanation: Break-even units = fixed costs / contribution margin per unit. Contribution margin = $50 - $30 = $20. Break-even = $120,000 / $20 = 6,000 units. At this volume total contribution exactly covers fixed costs and profit is zero.
2Under activity-based costing (ABC), what is the primary basis for assigning overhead costs to products?
A.Units of production for all overhead
B.Machine hours across the whole factory
C.Direct labour hours only
D.Cost drivers that reflect the activities consumed
Explanation: ABC assigns overhead using cost drivers that measure the actual consumption of activities (such as number of setups, inspections, or orders). This produces more accurate product costs than a single volume-based rate, especially where products consume overhead in differing proportions.
3A company is deciding whether to accept a one-off special order. Which of the following costs is NOT relevant to the decision?
A.Incremental variable cost of producing the order
B.Additional delivery cost incurred only for this order
C.Allocated head-office fixed overhead that will not change
D.Opportunity cost of displaced regular production
Explanation: Relevant costs are future cash flows that differ between alternatives. Allocated head-office fixed overhead that remains unchanged regardless of the order is a sunk/committed cost and is irrelevant. Incremental variable, additional delivery, and opportunity costs all change with the decision and are relevant.
4A firm has a contribution margin ratio of 40% and fixed costs of $200,000. What sales revenue is required to achieve a target profit of $80,000?
A.$500,000
B.$200,000
C.$280,000
D.$700,000
Explanation: Required sales = (fixed costs + target profit) / contribution margin ratio = ($200,000 + $80,000) / 0.40 = $280,000 / 0.40 = $700,000. The CM ratio shows the proportion of each sales dollar available to cover fixed costs and profit.
5Which costing method treats only variable manufacturing costs as product costs and expenses fixed manufacturing overhead in the period incurred?
A.Process costing
B.Absorption costing
C.Variable (marginal) costing
D.Standard costing
Explanation: Variable (marginal) costing includes only variable manufacturing costs in inventory and treats fixed manufacturing overhead as a period cost. Absorption costing, by contrast, includes fixed overhead in product cost, which can shift profit between periods when inventory levels change.
6When production exceeds sales in a period, how does absorption costing profit compare with variable costing profit?
A.Variable profit is higher
B.They are always equal
C.Absorption profit is always zero
D.Absorption profit is higher
Explanation: When production exceeds sales, inventory rises and absorption costing defers some fixed manufacturing overhead into closing inventory rather than expensing it. This makes absorption profit higher than variable costing profit, which expenses all fixed overhead immediately.
7A company faces a constraint of limited machine hours. To maximise profit, products should be ranked by which measure?
A.Contribution margin per unit
B.Selling price per unit
C.Contribution margin per machine hour
D.Total fixed cost per product
Explanation: When a single resource is the binding constraint, profit is maximised by ranking products on contribution margin per unit of the scarce resource (here, per machine hour). This ensures each constrained hour generates the greatest contribution, not merely the highest per-unit margin.
8A make-or-buy decision shows the external purchase price is $18 per unit. Internal variable cost is $14 and allocated fixed overhead is $6, of which $2 is avoidable if production stops. What is the relevant internal cost per unit for comparison?
A.$14
B.$18
C.$20
D.$16
Explanation: Relevant internal cost = variable cost + avoidable fixed cost = $14 + $2 = $16. Only avoidable fixed overhead is relevant; the $4 unavoidable portion continues regardless. Since $16 internal is below the $18 buy price, making is cheaper.
9In cost behaviour analysis, a cost that remains fixed in total within a relevant range but varies per unit as volume changes is best described as a:
A.Variable cost
B.Fixed cost
C.Step cost
D.Mixed cost
Explanation: A fixed cost stays constant in total within the relevant range, so its per-unit amount falls as volume rises and rises as volume falls. This inverse per-unit behaviour is a defining characteristic of fixed costs.
10Using the high-low method, total cost was $50,000 at 4,000 units and $74,000 at 10,000 units. What is the variable cost per unit?
A.$5.00
B.$7.40
C.$12.50
D.$4.00
Explanation: Variable cost per unit = change in cost / change in activity = ($74,000 - $50,000) / (10,000 - 4,000) = $24,000 / 6,000 = $4.00 per unit. The high-low method isolates the variable element using the two extreme activity points.

About the CA ANZ Core 5 Practice Questions

Verified exam format metadata for CA Program Core 5: Strategy and Business Performance is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.