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

1. The following is an extract from a budgetary control report for the latest period:

The budget variance for prime cost is:

A) $3,260 adverse
B) $18,580 adverse
C) $3,260 favourable
D) $3,340 adverse

2. The International Federation of Accountants (IFAC) stated that it was important that "accountants in business" should understand what the drivers of stakeholder value are. Which of the following statements is valid?

A) Only an organisation's shareholders can be considered to be its stakeholders.
B) Stakeholders must be external to the organisation.
C) Anyone with an interest in an organisation can be considered to be one of its stakeholders.
D) Only an organisation's shareholders and employees can be considered to be its stakeholders.

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

4. 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) 1,596 units
B) 1,494 units
C) 1,724 units
D) 1,890 units

5. Assume that a unit of output is the cost object. Which of the following statements is valid?

A) The salaries of supervisors who oversee the manufacture of several different products are an example of a direct labour cost.
B) Royalties paid on per unit basis are an example of an indirect expense.
C) Materials consumed in the maintenance of machinery used to manufacture several different products are an example of a direct material cost.
D) Rent paid for a factory in which several different products are produced is an example of an indirect expense.

Solutions: