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CIMA BA2 – Fundamentals of Management Accounting Question Tutorial Sample Questions:
1. A management accountant has forecast the following cash inflows from four potential projects.
All four projects require the same initial investment and will last for four years. They all result in a positive net present value but only one of the projects can be undertaken.
Which project should be selected?
A) Project A
B) Project C
C) Project B
D) Project D
2. Which TWO of the following are characteristics of Management Accounts? (Choose two.)
A) Provide information to managers
B) Governed by rules and regulations
C) Statutory requirement
D) Provide information needed by shareholders
E) Internally focused
3. The staffing policy for a supermarket is to have one cashier station open for every forecasted 20 customers per hour. Cashiers are hired by the hour as and when required, and do not perform any other duties.
The cost of the cashiers in relation to the number of customers would be classified as which type of cost?
A) Stepped fixed cost
B) Semi-variable cost
C) Fixed cost
D) Variable cost
4. A company has two production departments and two service departments (Maintenance and Stores). The overhead costs of each of the departments are as follows.
The following equations represent the reapportionment of each of the service department overheads to the other.
M = 4,700 + 0.1S
S = 5,800 + 0.2M
Where M = total Maintenance overhead after reapportionment from Stores
S = total Stores overhead after reapportionment from Maintenance
60% of the total Maintenance overhead and 50% of the total Stores overhead are to be apportioned to Production Department 1.
The total production overhead for Production Department 1 after reapportionment of the service departments' overhead costs is closest to:
A) $71,821
B) $70,720
C) $71,672
D) $75,500
5. The forecast costs per unit for a new product are as follows:
The company uses marginal cost plus pricing and all products are required to achieve a 40% margin.
What would be the selling price per unit?
A) $46.20
B) $37.80
C) $45.00
D) $55.00
Solutions:
Question # 1 Answer: A | Question # 2 Answer: A,C | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: A |