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

1. In responsibility accounting, costs and revenues are grouped according to:

A) the budget holder.
B) their behaviour.
C) the service provided.
D) their function.

2. 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 $41,500 gain.
B) The expected value of the total return is $40,000 gain.
C) The probability of the total return being a gain is less than 1.00.
D) The probability of the total return being a loss is 0.10.
E) The probability of making a total return of exactly $5,000 gain is 0.02.

3. Which type of budget would be the most suitable for a cash budget?

A) Flexible budget
B) Rolling budget
C) Incremental budget
D) Fixed budget

4. FILL BLANK
The following data are available for a delivery company. The table shows the number of tonnes delivered (x) and the associated distribution cist (y) in recent periods.

Further analysis of this data has determined the following:
∑xy = 36,427 ∑x2 = 1,144
Using least squares regression analysis, calculate the variable cost per tonne delivered. Give your answer to the nearest cent.

5. A company produces a single product for which the following cost data are available.

Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs.
What is the marginal cost per unit?

A) $8
B) $7
C) $9
D) $6

Solutions: