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

1. 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.

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

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

3. FILL BLANK
A company wishes to compare the variability of its monthly sales revenue in country A with that of country B.
The two countries use different currencies.
The monthly sales revenue for the last 48 months in country A (which is measured in $) has been analysed as follows.

What is the coefficient of variation of this data?
Give your answer as a percentage to one decimal place.

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

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

5. 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) Maintenance costs for the company's only production line.
D) Commissions paid to the sales team.
E) Factory rent.

Solutions: