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

1. 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) $35
C) $27
D) $21

2. A management accountant has forecast the following cash inflows from four potential projects.

All four projects require the same initial investment and will last for four years. They all result in a positive net present value but only one of the projects can be undertaken.
Which project should be selected?

A) Project D
B) Project C
C) Project B
D) Project A

3. The year-to-date results at the end of month 9 included sales revenue of $3,600,000 and variable costs of
$2,100,000.
During month 10, sales revenue was $450,000 and variable costs were $270,000.
What year-to-date contribution to sales ratio (C/S ratio) would be reported at the end of month 10?

A) 41,5%
B) 70,9%
C) 58,5%
D) 40,0%

4. In order for the information in a management accounting report to be authoritative its contents must be:

A) complete and reported in a timely manner.
B) complete and relevant.
C) trusted and from reliable sources.
D) both financial and non-financial.

5. 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) $9
C) $8
D) $6

Solutions: