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

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

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

1. Which THREE of the following are included in the Global Management Accounting Principles? (Choose three.)

A) Influence
B) Accountability
C) Integrity
D) Relevance
E) Value
F) Professional behaviour

2. A company produces a single product for which the following cost data are available.

Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs.
What is the marginal cost per unit?

A) $7
B) $6
C) $8
D) $9

3. Which of the following is a relevant cost?

A) An incremental cost
B) A sunk cost
C) A committed cost
D) A historical cost

4. A company's policy is to hold closing inventory each month equal to 10% of the next month's budgeted sales volume. The budgeted sales volumes of product Q for months 1 and 2 are 1,660 units and 2,300 units respectively.
The production budget for product Q for month 1 is:

A) 1,494 units
B) 1,890 units
C) 1,724 units
D) 1,596 units

5. The concept of the time value of money:

A) recognises the fact that earlier cash flows are worth more because they can be reinvested.
B) recognises the fact that a cash flow received today will always be worth more than a larger cash flow received in the future.
C) determines the higher interest rates that must be paid on longer term loans.
D) is used for making short term decisions.

Solutions: