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100+ Free CA ANZ Core 5 Practice Questions

Prepare for the CA Program Core 5: Strategy and Business Performance exam with instant access — no signup required.

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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 Exam

Core 5: Strategy and Business Performance (CACC2504) is a CA ANZ GradDipCA subject that develops skills to critique business performance and support decision-making. It covers management and cost accounting, budgeting and forecasting, variance analysis, pricing, capital investment appraisal, performance measurement, and business strategy, assessed through online quizzes and a high-stakes assignment.

Assessment

Question count not published by the exam provider

Time Limit

9-week study period; assessment tasks across the subject

Passing Score

CA ANZ sets the subject pass standard across quizzes and the assignment; no single public raw percentage is published.

Exam Fee

Bundled within CA Program subject enrolment fees set by CA ANZ; see the official fees page for current pricing. (Chartered Accountants Australia and New Zealand (CA ANZ))

CA ANZ Core 5 Exam Content Outline

~45%

Management and Cost Accounting

Cost behaviour, CVP and break-even analysis, costing methods including ABC and absorption versus variable costing, relevant costing for decisions, budgeting, forecasting, variance analysis, and pricing decisions.

~25%

Performance Measurement

KPIs, the balanced scorecard, ROI, residual income and EVA, responsibility accounting, divisional performance, financial and non-financial measures, and capital investment appraisal using NPV, IRR, and payback.

~30%

Business Strategy and Analysis

Porter's Five Forces, generic and growth strategies, SWOT and PESTLE, value chain, resource-based view, strategy evaluation, business analysis techniques, decision support, and data-informed decision-making.

How to Pass the CA ANZ Core 5 Exam

What You Need to Know

  • Passing score: CA ANZ sets the subject pass standard across quizzes and the assignment; no single public raw percentage is published.
  • Assessment: Question count not published by the exam provider
  • Time limit: 9-week study period; assessment tasks across the subject
  • Exam fee: Bundled within CA Program subject enrolment fees set by CA ANZ; see the official fees page for current pricing.

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CA ANZ Core 5 Study Tips from Top Performers

1Drill the core formulas (CVP, contribution margin, NPV, IRR, ROI, residual income, variances) until they are automatic, because the subject rewards applied calculation.
2Practise relevant-costing decisions by identifying which costs are avoidable, sunk, or opportunity costs before computing.
3Link performance measures to strategy: be able to explain how the balanced scorecard connects financial and non-financial KPIs.
4Use real business cases to apply Porter, SWOT, PESTLE, and the value chain, mirroring the subject's assignment style.
5Interpret variances by direction and cause, not just sign, and connect them to management action.
6Treat the assignment as the highest-stakes task: plan structure, evidence, and clear professional communication early.

Frequently Asked Questions

What is CA ANZ Core 5: Strategy and Business Performance?

It is the fifth core subject (CACC2504) of the CA ANZ GradDipCA, designed to build skills to critique business performance and support decision-making. It covers management and cost accounting, performance measurement, and business strategy across a 9-week study period.

How is Strategy and Business Performance assessed?

CA ANZ assesses this subject through online subject quizzes and a high-stakes assignment based on business case studies, rather than a single final invigilated exam. It is not one of the CA Program subjects with a final invigilated exam.

How many questions are in the CA ANZ Core 5 exam?

CA ANZ does not publish a fixed question count because the subject is assessed through quizzes and an assignment. This free resource provides 100 multiple-choice questions as knowledge prep across the subject's quantitative and strategic content.

How long is the Core 5 subject?

Strategy and Business Performance runs over a 9-week study period within the CA Program. Most candidates allow well over 100 hours for study, quizzes, and completing the assignment.

What topics does Core 5 cover?

Core 5 covers management and cost accounting (CVP, costing, ABC, relevant costing), budgeting and forecasting, variance analysis, pricing, capital investment appraisal, working capital, performance measurement (KPIs, balanced scorecard, ROI, residual income), and strategy frameworks such as Porter and SWOT/PESTLE.

Is this practice set official CA ANZ material?

No. This is a free, independent knowledge-prep set aligned to the publicly described scope of CACC2504. It complements, but does not replace, the official CA ANZ study materials provided on enrolment.

What are the entry requirements for the CA Program?

Candidates need provisional CA ANZ membership and an accredited degree or recognised equivalent, and must complete Mentored Practical Experience alongside the subjects. Subject sequencing follows CA ANZ CA Program policy.

Does CA ANZ publish a pass rate for Core 5?

No. CA ANZ does not publish a subject-level pass rate or a single public raw passing percentage for Strategy and Business Performance. The pass standard is set across quizzes and the assignment.