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

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

Question 1

DRAG DROP
A company manufactures three products using the same direct labour which will be in short supply next month.
No inventories are held. Data for the three products are as follows:

The fixed costs are all committed costs and cannot now be altered for the next month.
Place the labels against the correct product to indicate the order of priority for manufacture that will maximise the profit for the next month.
Select and Place:

Question 2

The following is an extract from a budgetary control report for the latest period:

The budget variance for prime cost is:

A. $3,260 adverse
B. $18,580 adverse
C. $3,340 adverse
D. $3,260 favourable

Question 3

The concept of the time value of money:

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

Question 4

FILL BLANK
A company absorbs production overhead using a direct labour hour rate. Data for the latest period are as follows:

What is the overhead absorption rate per direct labour hour? Give your answer to one decimal place.

Question 5

Which THREE of the following are parts of the master budget? (Choose three.)

A. Administration overhead budget.
B. Cash flow budget.
C. Budgeted statement of financial position.
D. Budgeted statement of profit or loss.
E. Sales budget.
F. Finished goods inventory budget.

Solutions: