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CIMA BA2 Exam Syllabus Topics:

CIMA Fundamentals of management accounting Sample Questions:

Question 1

Which of the following are not relevant costs? Select ALL that apply.

A. The rent paid by a shoe manufacturing company leasing a warehouse for 3 years.
B. The declining value of a food processing plant's machinery.
C. The materials no longer needed after a product has been discontinued.
D. A construction firm hiring builders on temporary contracts to complete a specific job.

Question 2

Overhead absorption is best described as:

A. The identification of costs specifically attributable to a particular cost centre
B. The identification of overhead cost variances
C. The process of sharing costs amongst two or more cost centres
D. The charging of overheads to cost units produced

Question 3

Refer to the exhibit.

In this profit/volume graph, which distance indicates the contribution earned at level of activity L?

A. Distance a
B. Distance b
C. Distance c
D. Distance d

Question 4

Apex Plc has budgeted to sell 8,000 units of A in the year. Opening inventory of A is estimated at 1,000 units and the company plans to reduce inventory levels of all products by 15%.
What will be the production budget (in units) for the year?

Question 5

A company is appraising two projects. Both projects are for five years. Details of the two projects are as follows.

Based on the above information, which of the following statements is correct?

A. An annuity could be used to calculate the net present value of the projects.
B. A perpetuity could be used to calculate the net present value of the projects.
C. The annuity factor for project A would double the annuity factor for project B.
D. The annuity factor for project A would be lower than the annuity factor for the project B.

Solutions: