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

1. Data for the latest period for a company which makes and sells a single product are as follows:

There were no budgeted or actual changes in inventories during the period.
The sales volume contribution variance for the period was:

A) $16,000 adverse.
B) $6,220 adverse.
C) $5,666 adverse.
D) $9,267 adverse.

2. Which of the following is a relevant cost?

A) A committed cost
B) A historical cost
C) An incremental cost
D) A sunk cost

3. Assume that a unit of output is the cost object. Which of the following statements is valid?

A) Materials consumed in the maintenance of machinery used to manufacture several different products are an example of a direct material cost.
B) Rent paid for a factory in which several different products are produced is an example of an indirect expense.
C) The salaries of supervisors who oversee the manufacture of several different products are an example of a direct labour cost.
D) Royalties paid on per unit basis are an example of an indirect expense.

4. The possible returns and associated probabilities of two independent projects are as follows:

It has been decided that both projects are to be launched.
Which TWO of the following statements are correct? (Choose two.)

A) The expected value of the total return is $40,000 gain.
B) The expected value of the total return is $41,500 gain.
C) The probability of the total return being a loss is 0.10.
D) The probability of making a total return of exactly $5,000 gain is 0.02.
E) The probability of the total return being a gain is less than 1.00.

5. Data for the latest period for a company which makes and sells a single product are as follows:

There were no budgeted or actual changes in inventories during the period.
The variable overhead expenditure variance for the period was:

A) $462 adverse.
B) $462 favourable.
C) $2,202 adverse.
D) $2,202 favourable.

Solutions: