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

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

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

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

3. A new product requires an investment of $200,000 in machinery and working capital. The total sales volume over the product's life will be 5,000 units. The forecast costs per unit throughout the product's life are as follows:

The product is required to earn a return on investment of 35%.
What unit selling price needs to be achieved?

A) $47.00
B) $54.00
C) $50.77
D) $44.55

4. A company which manufactures and sells one product has fixed costs of $80,000 per period. The selling price per unit of $25 generates a contribution/sales ratio of 40%.
How many units would need to be sold in a period to earn a profit of $10,000?

A) 8,000
B) 36,000
C) 9,000
D) 32,000

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

The budget variance for prime cost is:

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

Solutions: