CIMA BA2 Exam : Fundamentals of management accounting

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CIMA BA2 Exam Syllabus Topics:

CIMA Fundamentals of management accounting Sample Questions:

1. Which of the following is the correct definition is an annuity:

A) A chain of regular cash flows up to a certain period of time.
B) A series of cash outflows which goes on forever.
C) A set of regular payments of increasing value.

2. Relevant costs for decision making are.

A) Variable costs only
B) Unavoidable costs
C) Future costs which will be affected by the decision
D) Past costs incurred

3. Refer to the exhibit.

The following scattergraph has been drawn for a certain cost in recent periods.
Based on this scattergraph the variable cost per unit is:

4. 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?

5. Within the relevant range, a variable cost is a cost which:

A) varies in total in proportion to the level of activity.
B) varies in total in proportion to the level of inflation.
C) cannot be forecast with any degree of accuracy because of its variability.
D) varies per unit in proportion to the level of activity.

Solutions: