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CIMA BA2 Exam Syllabus Topics:

CIMA Fundamentals of management accounting Sample Questions:

1. The variable cost of a product is £7 per unit. The fixed costs of the product are £140,000. The break-even point is 70,000 units.
The selling price of the product is:
Give your answer to 2 decimal places.

2. A company uses an integrated accounting system.
The accounting entries for depreciation of machinery used for production would be.

A) Debit: Provision for depreciation accountCredit: Work in progress control account
B) Debit: Production overhead control account Credit: Provision for depreciation account
C) Debit: Provision for depreciation account Credit: Non-current Assets account
D) Debit: Work in progress control accountCredit: Provision for depreciation account

3. Refer to the exhibit.

A company is considering purchasing a machine that will have a useful life of three years after which time it will be sold. Relevant cash flows relating to the purchase and operation of the machine are as follows.
The annual cost of capital is 14%.
The net present value of the investment in the machine is, to the nearest whole $:

4. It is company policy that the closing inventory of finished goods must be equal to 20% of the following month's budgeted sales. The budget sales for November and December are 6,000 and 7,000 units respectively.
The budgeted production for November will be

5. The following data relate to the latest period.

A statement is to be prepared that reconciles the difference between the flexible budget profit and the actual profit.
Which TWO of the following will appear on this statement? (Choose two.)

A) A favourable labour rate variance.
B) An adverse labour efficiency variance.
C) An adverse material price variance.
D) A favourable sales volume contribution variance.
E) An adverse sales price variance.

Solutions: