CIMA CIMAPRO17-BA2-X1-ENG : BA2 – Fundamentals of Management Accounting Question Tutorial

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CIMA CIMAPRO17-BA2-X1-ENG Exam Syllabus Topics:

CIMA BA2 – Fundamentals of Management Accounting Question Tutorial Sample Questions:

1. FILL BLANK
The records of a manufacturing company show the following relationship between total cost and output.

The budgeted output for Period 3 is 27,000 units. Assume that previous cost behaviour patterns will continue.
What is the total budgeted cost for Period 3?
Give your answer in the nearest whole number.

2. An organisation produces and sells a single product. The organisation's management accountant has reported the following information for the most recent period.

Which TWO of the following statements are valid? (Choose two.)

A) If the selling price changed to $22 per unit, the breakeven point would become lower.
B) If the contribution to sales ratio changed to 30%, the breakeven point would become higher.
C) If the variable cost changed to $16 per unit, the breakeven point would become lower.
D) If the fixed cost changed to $445,000, the breakeven point would not change.
E) If the sales volume changed to 220,000 units, the breakeven point would not change.

3. A company is appraising two projects. Both projects are for five years. Details of the two projects are as follows.

Based on the above information, which of the following statements is correct?

A) An annuity could be used to calculate the net present value of the projects.
B) A perpetuity could be used to calculate the net present value of the projects.
C) The annuity factor for project A would be lower than the annuity factor for the project B.
D) The annuity factor for project A would double the annuity factor for project B.

4. Which of the following is NOT a valid purpose of budgeting?

A) To comply with financial reporting requirements.
B) To communicate targets to managers.
C) To authorise managers to incur expenditure.
D) To coordinate the different activities of an organisation.

5. A company uses standard absorption costing. Budgeted and actual data for the latest period are as follows.

What was the production overhead absorption rate per unit?

A) $29
B) $21
C) $27
D) $35

Solutions: