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CIMA Fundamentals of management accounting Sample Questions:

1. Refer to the exhibit.

The following standard cost information relates to the production department of Brace Engineering Ltd.
The actual data for the month of March was as follows:

What is the direct labour rate variance (to the nearest whole number)?

A) £2,656 favourable
B) £2,656 adverse
C) £2,500 favourable
D) £2,500 adverse

2. Xter Ltd produces product 'PZ'. The forecast sales for the forthcoming year are 50,000 units.
It is anticipated that there will be 10,000 units of opening inventory at the beginning of the year. However, management wishes to reduce this inventory by 30% by the end of next year.
The production budget for the forthcoming year will be

3. Which one of the following is NOT a main purpose of management accounting?

A) Planning
B) Reporting to shareholders
C) Decision making
D) Controlling

4. Refer to the exhibit.

The budgetary control report for the latest period shows the following. Variances in brackets are adverse.
The sales volume contribution variance for the period was

A) $26,700 adverse
B) $4,500 favorable
C) $27,200 adverse
D) $500 favorable

5. Refer to the exhibit.

A company operates a process costing system. The following data relates to Process X for the month of September.
Normal loss is 5% of input and all losses occur at the end of the process.
The number of equivalent units, using an average cost basis of valuation, was:
Conversion:

Solutions: