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

1. The year-to-date results at the end of month 9 included sales revenue of $3,600,000 and variable costs of
$2,100,000.
During month 10, sales revenue was $450,000 and variable costs were $270,000.
What year-to-date contribution to sales ratio (C/S ratio) would be reported at the end of month 10?

A) 70,9%
B) 41,5%
C) 58,5%
D) 40,0%

2. Which of the following statements about batch costing is true?

A) The cost of a unit is found by dividing the cost of a batch by the number of units in the batch.
B) The cost of a batch is found by multiplying the cost of one unit by the number of units in the batch.
C) Batch costing must use marginal costing.
D) Batch costing must use absorption costing.

3. FILL BLANK
The records of a manufacturing company show the following relationship between total cost and output.

The budgeted output for Period 3 is 27,000 units. Assume that previous cost behaviour patterns will continue.
What is the total budgeted cost for Period 3?
Give your answer in the nearest whole number.

4. An organisation produces and sells a single product. The organisation's management accountant has reported the following information for the most recent period.

Which TWO of the following statements are valid? (Choose two.)

A) If the fixed cost changed to $445,000, the breakeven point would not change.
B) If the selling price changed to $22 per unit, the breakeven point would become lower.
C) If the contribution to sales ratio changed to 30%, the breakeven point would become higher.
D) If the sales volume changed to 220,000 units, the breakeven point would not change.
E) If the variable cost changed to $16 per unit, the breakeven point would become lower.

5. The following is an extract from a budgetary control report for the latest period:

The budget variance for prime cost is:

A) $3,260 adverse
B) $3,340 adverse
C) $18,580 adverse
D) $3,260 favourable

Solutions: