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

1. FILL BLANK
A company uses full cost pricing. The unit costs for product Z are given below.

What price per unit should be charged in order to achieve a profit margin of 20%?
Give your answer to the nearest cent.

2. A small airport's management accountant has prepared the following management report on the performance of its four retail outlets.

Which retail outlet has the highest contribution per square metre?

A) Outlet A
B) Outlet B
C) Outlet D
D) Outlet C

3. Which of the following statements regarding variances is valid?

A) Using higher quality material than standard could explain an adverse labour efficiency variance.
B) Improved maintenance of production machinery could explain an adverse material usage variance.
C) Poor supervision could explain a favourable labour rate variance.
D) An adverse labour rate variance could explain a favourable labour efficiency variance.

4. 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) $2,202 favourable.
B) $2,202 adverse.
C) $462 adverse.
D) $462 favourable.

5. A company's policy is to hold closing inventory each month equal to 10% of the next month's budgeted sales volume. The budgeted sales volumes of product Q for months 1 and 2 are 1,660 units and 2,300 units respectively.
The production budget for product Q for month 1 is:

A) 1,724 units
B) 1,494 units
C) 1,596 units
D) 1,890 units

Solutions: