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

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

1. Which of the following is NOT a valid purpose of budgeting?

A) To authorise managers to incur expenditure.
B) To coordinate the different activities of an organisation.
C) To communicate targets to managers.
D) To comply with financial reporting requirements.

2. FILL BLANK
The records of a manufacturing company show the following relationship between total cost and output.

The budgeted output for Period 3 is 27,000 units. Assume that previous cost behaviour patterns will continue.
What is the total budgeted cost for Period 3?
Give your answer in the nearest whole number.

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

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

4. A company's management accountant wishes to calculate the present value of the cost of renting a delivery vehicle. There will be five annual rental payments of $5,000, the first of which is due immediately. The company's discount rate is 12%.
Which TWO of the following are valid ways to calculate the present value of the rental payments? (Choose two.)

A) $5,000/1.12 + $5,000/(1.12)2 + $5,000/(1.12)3 + $5,000/(1.12)4+ $5,000/(1.12)5
B) $5,000 + ($5,000 x 3.605)
C) $5,000 + ($5,000 x 3.037)
D) $5,000 x 3.605
E) $5,000 + $5,000/1.12 + $5,000/(1.12)2 + $5,000/(1.12)3 + $5,000/(1.12)4

5. 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.

Solutions: