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CIMA CIMAPRO17-BA2-X1-ENG Exam Syllabus Topics:

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

1. Which of the following is NOT a characteristic of useful operational level information?

A) Focused on the decision to be made.
B) Governed by financial reporting standards.
C) Sufficiently accurate.
D) Available immediately.

2. DRAG DROP
A company manufactures three products using the same direct labour which will be in short supply next month.
No inventories are held. Data for the three products are as follows:

The fixed costs are all committed costs and cannot now be altered for the next month.
Place the labels against the correct product to indicate the order of priority for manufacture that will maximise the profit for the next month.
Select and Place:

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 NOT a valid purpose of budgeting?

A) To coordinate the different activities of an organisation.
B) To communicate targets to managers.
C) To comply with financial reporting requirements.
D) To authorise managers to incur expenditure.

5. A company has spent $5,000 on a report into the viability of using a subcontractor. The report highlighted the following:
A machine purchased six years ago for $30,000 would become surplus to requirements. It has a written- down value of $10,000 but would be resold for $12,000.
A machine operator would be made redundant and would receive a redundancy payment of $40,000.
The administration of the subcontractor arrangement would cost the company $25,000 each year.
Which THREE of the following are relevant for the decision? (Choose three.)

A) A relevant cost of $40,000 for the redundancy payment.
B) A relevant cost of $30,000 for the machine.
C) A relevant cost of $25,000 each year for administration.
D) A relevant cost of $10,000 for the machine.
E) A relevant revenue of $12,000 for the machine.
F) A relevant cost of $5,000 for the viability report.

Solutions: