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CIMA CIMAPRO17-BA2-X1-ENG guide torrent - BA2 – Fundamentals of Management Accounting Question Tutorial

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CIMAPRO17-BA2-X1-ENG guide torrent
  • Exam Code: CIMAPRO17-BA2-X1-ENG
  • Exam Name: BA2 – Fundamentals of Management Accounting Question Tutorial

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

SectionWeightObjectives
The Context of Management Accounting10%- Role of CIMA
  • 1. Development of management accounting practice
  • 2. Professional body for management accountants
- Purpose of Management Accounting
  • 1. Characteristics of financial information
  • 2. Role of the management accountant
  • 3. Relationship between management accountants and managers
  • 4. Need for management accounting
Costing25%- Cost Identification and Classification
  • 1. Variable, semi-variable, stepped and fixed costs
  • 2. Relevant and irrelevant costs
  • 3. Cost behaviour analysis
  • 4. Direct and indirect costs
- Absorption and Marginal Costing
  • 1. Pricing decisions
  • 2. Profit reconciliation
  • 3. Full costing
  • 4. Overhead allocation and apportionment
  • 5. Marginal costing
Decision Making35%- Investment and Strategic Decisions
  • 1. Profit maximisation
  • 2. Investment appraisal techniques
  • 3. Use of accounting information for decision making
- Short-Term Decision Making
  • 1. Limiting factor analysis
  • 2. Cost-volume-profit analysis
  • 3. Make or buy decisions
  • 4. Break-even analysis
Planning and Control30%- Performance Measurement and Control
  • 1. Standard costing
  • 2. Performance reporting
  • 3. Variance analysis
- Budgeting
  • 1. Functional budgets
  • 2. Preparation of budgets
  • 3. Cash budgets

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

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