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

1. A company uses an integrated accounting system. The following data relate to the latest period.

At the end of the period, the entry in the production overhead control account in respect of under or over absorbed overheads will be:

A) $22,672 credit.
B) $2,208 debit.
C) $2,208 credit.
D) $22,672 debit.

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

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

3. An organisation produces and sells a single product. The organisation's management accountant has reported the following information for the most recent period.

Which TWO of the following statements are valid? (Choose two.)

A) If the variable cost changed to $16 per unit, the breakeven point would become lower.
B) If the fixed cost changed to $445,000, the breakeven point would not change.
C) If the sales volume changed to 220,000 units, the breakeven point would not change.
D) If the selling price changed to $22 per unit, the breakeven point would become lower.
E) If the contribution to sales ratio changed to 30%, the breakeven point would become higher.

4. An organisation's management report contains the following data:

Which division has the highest operating margin percentage?

A) Division B
B) Division A
C) Division D
D) Division C

5. Which of the following is a valid definition of a cash budget?

A) A detailed budget of estimated cash inflows and outflows incorporating revenue items only.
B) A detailed budget of estimated cash inflows and outflows incorporating both revenue and capital items.
C) A detailed budget of estimated cash outflows only, incorporating both depreciation and capital expenditure.
D) A detailed budget of estimated cash inflows only, incorporating receipts from cash sales as well as from credit customers.

Solutions: