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

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

1. 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) 1,596 units
C) 1,724 units
D) 1,890 units

2. Which of the following would NOT be an appropriate performance measure for a profit centre manager?

A) Return on capital employed
B) Contribution per unit
C) Sales price variance
D) Gross margin

3. A company has spent $5,000 on a report into the viability of using a subcontractor. The report highlighted the following:
A machine purchased six years ago for $30,000 would become surplus to requirements. It has a written- down value of $10,000 but would be resold for $12,000.
A machine operator would be made redundant and would receive a redundancy payment of $40,000.
The administration of the subcontractor arrangement would cost the company $25,000 each year.
Which THREE of the following are relevant for the decision? (Choose three.)

A) A relevant cost of $40,000 for the redundancy payment.
B) A relevant cost of $25,000 each year for administration.
C) A relevant revenue of $12,000 for the machine.
D) A relevant cost of $5,000 for the viability report.
E) A relevant cost of $30,000 for the machine.
F) A relevant cost of $10,000 for the machine.

4. Which of the following statements relating to risk and uncertainty is correct?

A) Risk exists when we do not know all of the possible outcomes.
B) Uncertainty exists when we know all of the possible outcomes and their probabilities.
C) Uncertainty exists when we know all of the possible outcomes but not their probabilities.
D) Risk exists when we know all of the possible outcomes but not their probabilities.

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

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

Solutions: