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BA2 – Fundamentals of Management Accounting Question Tutorial CIMAPRO17-BA2-X1-ENG exam torrent materials
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CIMA CIMAPRO17-BA2-X1-ENG Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| The Context of Management Accounting | 10% | - Role of CIMA
|
| Costing | 25% | - Cost Identification and Classification
|
| Decision Making | 35% | - Investment and Strategic Decisions
|
| Planning and Control | 30% | - Performance Measurement and Control
|
CIMA BA2 – Fundamentals of Management Accounting Question Tutorial Sample Questions:
Question 1
The following is an extract from a budgetary control report for the latest period:
The budget variance for prime cost is:
A. $3,260 favourable
B. $18,580 adverse
C. $3,260 adverse
D. $3,340 adverse
Question 2
Which of the following would NOT require taking into account the time value of money?
A. Selecting an investment project on the basis that it has a positive net present value (NPV).
B. Calculating the present value of a five-year annuity.
C. Deciding to make a long-term investment in a project on the basis of its payback period.
D. Taking a long-term investment decision on the basis of the project's internal rate of return (IRR).
Question 3
A company makes and sells a range of products. The standard details per unit for one of these products, product X, are as follows.
To meet sales demand, the company must obtain 2,000 units of product X next month. There is sufficient labour capacity to produce 1,500 of these units in-house during normal time. However, any production above this level would require overtime working which would be paid at a premium of 50%.
The company can buy as many units of product X as it wishes next month from an external supplier at a price of $120 per unit.
What is the total financial benefit to the company of purchasing the appropriate number of units from the external supplier rather than producing them in-house?
A. $5,000
B. $27,500
C. $30,000
D. $20,000
Question 4
Which of the following would NOT be an appropriate performance measure for a profit centre manager?
A. Return on capital employed
B. Gross margin
C. Sales price variance
D. Contribution per unit
Question 5
A company's management accountant wishes to calculate the present value of the cost of renting a delivery vehicle. There will be five annual rental payments of $5,000, the first of which is due immediately. The company's discount rate is 12%.
Which TWO of the following are valid ways to calculate the present value of the rental payments? (Choose two.)
A. $5,000 x 3.605
B. $5,000 + ($5,000 x 3.037)
C. $5,000 + $5,000/1.12 + $5,000/(1.12)2 + $5,000/(1.12)3 + $5,000/(1.12)4
D. $5,000 + ($5,000 x 3.605)
E. $5,000/1.12 + $5,000/(1.12)2 + $5,000/(1.12)3 + $5,000/(1.12)4+ $5,000/(1.12)5
Solutions:
| Question 1 Answer: B | Question 2 Answer: B | Question 3 Answer: A | Question 4 Answer: D | Question 5 Answer: A,D |



