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

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

1. Which of the following statements relating to risk and uncertainty is correct?

A) Risk exists when we do not know all of the possible outcomes.
B) Uncertainty exists when we know all of the possible outcomes and their probabilities.
C) Risk exists when we know all of the possible outcomes but not their probabilities.
D) Uncertainty exists when we know all of the possible outcomes but not their probabilities.

2. A company uses standard absorption costing. Budgeted and actual data for the latest period are as follows.

What was the production overhead absorption rate per unit?

A) $27
B) $21
C) $35
D) $29

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) $20,000
B) $30,000
C) $5,000
D) $27,500

4. 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 B
B) Outlet C
C) Outlet A
D) Outlet D

5. A sales manager has analysed a sample of 350 sales transactions from the latest period. The manager wishes to investigate:
how many customers made their purchase online using the internet and how many purchased by telephone.
how many were new customers and how many were placing repeat orders.
The following table shows the results of the analysis.

If the pattern of sales occurs next period, the probability of a particular sale being a repeat order placed online is closest to:

A) 0.35
B) 0.40
C) 0.11
D) 0.16

Solutions: