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

1. FILL BLANK
A company uses full cost pricing. The unit costs for product Z are given below.

What price per unit should be charged in order to achieve a profit margin of 20%?
Give your answer to the nearest cent.

2. In responsibility accounting, costs and revenues are grouped according to:

A) the budget holder.
B) their function.
C) the service provided.
D) their behaviour.

3. A company's management accountant wishes to calculate the present value of the cost of renting a delivery vehicle. There will be five annual rental payments of $5,000, the first of which is due immediately. The company's discount rate is 12%.
Which TWO of the following are valid ways to calculate the present value of the rental payments? (Choose two.)

A) $5,000/1.12 + $5,000/(1.12)2 + $5,000/(1.12)3 + $5,000/(1.12)4+ $5,000/(1.12)5
B) $5,000 x 3.605
C) $5,000 + $5,000/1.12 + $5,000/(1.12)2 + $5,000/(1.12)3 + $5,000/(1.12)4
D) $5,000 + ($5,000 x 3.605)
E) $5,000 + ($5,000 x 3.037)

4. 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) $3,260 favourable
D) $18,580 adverse

5. A company uses standard absorption costing. Budgeted and actual data for the latest period are as follows.

What was the production overhead absorption rate per unit?

A) $21
B) $27
C) $29
D) $35

Solutions: