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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 has two production departments and two service departments (Maintenance and Stores). The overhead costs of each of the departments are as follows.

The following equations represent the reapportionment of each of the service department overheads to the other.
M = 4,700 + 0.1S
S = 5,800 + 0.2M
Where M = total Maintenance overhead after reapportionment from Stores
S = total Stores overhead after reapportionment from Maintenance
60% of the total Maintenance overhead and 50% of the total Stores overhead are to be apportioned to Production Department 1.
The total production overhead for Production Department 1 after reapportionment of the service departments' overhead costs is closest to:

A) $71,672
B) $75,500
C) $70,720
D) $71,821

2. Which of the following statements about batch costing is true?

A) Batch costing must use marginal costing.
B) Batch costing must use absorption costing.
C) The cost of a batch is found by multiplying the cost of one unit by the number of units in the batch.
D) The cost of a unit is found by dividing the cost of a batch by the number of units in the batch.

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

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

4. Which of the following statements regarding variances is valid?

A) Poor supervision could explain a favourable labour rate variance.
B) Improved maintenance of production machinery could explain an adverse material usage variance.
C) An adverse labour rate variance could explain a favourable labour efficiency variance.
D) Using higher quality material than standard could explain an adverse labour efficiency variance.

5. Data for the latest period for a company which makes and sells a single product are as follows:

There were no budgeted or actual changes in inventories during the period.
The variable overhead expenditure variance for the period was:

A) $462 favourable.
B) $462 adverse.
C) $2,202 adverse.
D) $2,202 favourable.

Solutions: