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CIMA BA2 Exam Syllabus Topics:

CIMA Fundamentals of management accounting Sample Questions:

1. A company's output level increases but remains within the relevant range. Which ONE of the following statements is incorrect?

A) Variable costs per unit will decrease
B) Fixed costs per unit will decrease
C) Total variable costs will increase
D) Total fixed costs will remain the same

2. The standard material content of 1 unit of PAJ is £200 (8Kg at £25 per Kg).
During Period 5, 1300 Kg of materials were purchased at a total cost of £35000 and were used to produce 170 units of PAJ.
What was the materials price variance for Period 5?

A) £2500 Adverse
B) £4250 Favourable
C) £1500 Favourable
D) £1000 Adverse

3. Refer to the exhibit.

The prime cost of product 'Z' is as follows:
Overheads are absorbed at £4.00 per labor hour in Department 1 and £6.00 per labor hour in Department 2.
The production cost of Product Z, to the nearest £, will be:
Give your answer to 2 decimal places.

4. Refer to the exhibit.

The following data relates to two activity levels of a department. Overhead absorption is on the basis of machine hours.
The variable overhead rate per hour is £4.50. The amount of fixed overhead, to the nearest £000, is:

5. Refer to the exhibit.

A company manufactures a single product, and relevant data is as follows:
Note. Overheads are assumed to be related to direct labour hours.
The actual results for the period were as follows:

What is the variable overhead expenditure variance?

A) £4,000 adverse
B) £5,000 adverse
C) £4,000 favourable
D) £5,000 favourable

Solutions: