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

1. An organisation produces and sells a single product. The organisation's management accountant has reported the following information for the most recent period.

Which TWO of the following statements are valid? (Choose two.)

A) If the sales volume changed to 220,000 units, the breakeven point would not change.
B) If the contribution to sales ratio changed to 30%, the breakeven point would become higher.
C) If the variable cost changed to $16 per unit, the breakeven point would become lower.
D) If the selling price changed to $22 per unit, the breakeven point would become lower.
E) If the fixed cost changed to $445,000, the breakeven point would not change.

2. Which of the following would NOT be an appropriate performance measure for a profit centre manager?

A) Sales price variance
B) Return on capital employed
C) Contribution per unit
D) Gross margin

3. A company's policy is to hold closing inventory each month equal to 10% of the next month's budgeted sales volume. The budgeted sales volumes of product Q for months 1 and 2 are 1,660 units and 2,300 units respectively.
The production budget for product Q for month 1 is:

A) 1,724 units
B) 1,494 units
C) 1,890 units
D) 1,596 units

4. Which of the following statements about batch costing is true?

A) Batch costing must use absorption costing.
B) The cost of a batch is found by multiplying the cost of one unit by the number of units in the batch.
C) The cost of a unit is found by dividing the cost of a batch by the number of units in the batch.
D) Batch costing must use marginal costing.

5. Which of the following is a valid definition of a cash budget?

A) A detailed budget of estimated cash outflows only, incorporating both depreciation and capital expenditure.
B) A detailed budget of estimated cash inflows and outflows incorporating revenue items only.
C) A detailed budget of estimated cash inflows and outflows incorporating both revenue and capital items.
D) A detailed budget of estimated cash inflows only, incorporating receipts from cash sales as well as from credit customers.

Solutions: