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

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

1. Based upon extensive historical evidence, a company's daily sales volume is known to be normally distributed with a mean of 1,728 units and a standard deviation of 273 units.
What is the probability that, on any one day, the sales volume will be at least 1,300 units?

A) 94.18%
B) 44.18%
C) 5.82%
D) 73.89%

2. In a company that manufactures many different products on the same production line, which TWO of the following would NOT be classified as indirect production costs? (Choose two.)

A) Royalties paid to the designers of the products.
B) Salary paid to the factory manager.
C) Factory rent.
D) Maintenance costs for the company's only production line.
E) Commissions paid to the sales team.

3. A company operates an integrated standard cost accounting system. The standard price of raw material A is
$20 per litre. At the start of period 1, the inventory of 500 litres of raw material A was valued at $20 per litre.
During period 1, 100 litres of raw material A were purchased at an actual price of $21 per litre. During period 2,
550 litres of raw material A were issued to Job 789.
In respect of the above events, which TWO of the following statements are correct? (Choose two.)

A) An adverse material price variance should be recorded in the statement of profit or loss for period 2.
B) An adverse material price variance should be recorded in the statement of profit or loss for period 1.
C) The raw material inventory at the end of period 1 should include 100 litres valued at $21 per litre.
D) The raw material inventory at the end of period 2 should be valued at $20 per litre.
E) The first 500 litres of raw material A issued should be debited to the Job 789 account at $20 per litre, and the remaining 50 litres at $21 per litre.

4. A confectionery manufacturer is considering adding a new product to the current range. Forecast data for the product are as follows.

Incremental fixed costs attributable to the new product are forecast to be $24,000 each period.
The forecast sales volume of 180 units is insufficient to achieve the target profit of $10,000 each period.
Which of the following statements is correct?

A) If the selling price is changed to $510 the sales volume required to achieve the target profit will increase.
B) The margin of safety is negative because the target profit will not be achieved from the forecast sales volume.
C) If the forecast sales volume is changed to 190 units the sales volume required to achieve the target profit will decrease.
D) If the fixed cost is changed to $20,000 the sales volume required to break even will decrease.

5. In order for the information in a management accounting report to be authoritative its contents must be:

A) trusted and from reliable sources.
B) complete and reported in a timely manner.
C) complete and relevant.
D) both financial and non-financial.

Solutions: