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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. FILL BLANK
A company absorbs production overhead using a direct labour hour rate. Data for the latest period are as follows:

What is the overhead absorption rate per direct labour hour? Give your answer to one decimal place.

3. The following data relate to the latest period.

A statement is to be prepared that reconciles the difference between the flexible budget profit and the actual profit.
Which TWO of the following will appear on this statement? (Choose two.)

A) An adverse material price variance.
B) A favourable labour rate variance.
C) A favourable sales volume contribution variance.
D) An adverse sales price variance.
E) An adverse labour efficiency variance.

4. Which THREE of the following are parts of the master budget? (Choose three.)

A) Administration overhead budget.
B) Finished goods inventory budget.
C) Cash flow budget.
D) Budgeted statement of profit or loss.
E) Sales budget.
F) Budgeted statement of financial position.

5. Which of the following statements relating to risk and uncertainty is correct?

A) Risk exists when we do not know all of the possible outcomes.
B) Uncertainty exists when we know all of the possible outcomes but not their probabilities.
C) Risk exists when we know all of the possible outcomes but not their probabilities.
D) Uncertainty exists when we know all of the possible outcomes and their probabilities.

Solutions: