CIMA BA2 Value Pack (Frequently Bought Together)

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CIMA BA2 Exam Syllabus Topics:

CIMA Fundamentals of management accounting Sample Questions:

1. Prime cost is:

A) Total product cost minus overheads
B) The cost of operating a cost centre
C) The material cost of the product
D) All costs incurred in making a product

2. A company operates a full cost system of pricing. Production overheads are absorbed using a pre-determined absorption rate of £3.50 per machine hour. The direct production cost of product A is £15 per unit and it utilises 6 machine hours per unit. The mark-up for non-production costs is 10% of total production cost. The company applies a 25% mark-up on total cost for all products.
The required selling price for Product A, to two decimal places, is:

3. The Chartered Institute of Management Accounting's definition of management accounting outlines four responsibilities of the accountant in terms of the value for the stakeholders. The management accountant should aim to have which of the following effects according to CIMA?

A) Protect value for the stakeholder
B) Damage value for the stakeholder
C) Preserve value for the stakeholder
D) Decrease value for the stakeholder
E) Increase value for the stakeholder
F) Create value for the stakeholder

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

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

5. PQR Manufacturing Ltd. has £3,000,000 of fixed costs for the forthcoming period. The company produces a single product 'X', which has a selling price of £75 per unit and total cost of £50.
75% of the total cost represents variable costs.
How many units (to the nearest whole unit) will the organization need to produce and sell to generate a profit of £500,000?

Solutions: