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

1. Which THREE of the following are parts of the master budget? (Choose three.)

A) Budgeted statement of financial position.
B) Sales budget.
C) Cash flow budget.
D) Finished goods inventory budget.
E) Administration overhead budget.
F) Budgeted statement of profit or loss.

2. The possible returns and associated probabilities of two independent projects are as follows:

It has been decided that both projects are to be launched.
Which TWO of the following statements are correct? (Choose two.)

A) The probability of making a total return of exactly $5,000 gain is 0.02.
B) The expected value of the total return is $41,500 gain.
C) The probability of the total return being a loss is 0.10.
D) The expected value of the total return is $40,000 gain.
E) The probability of the total return being a gain is less than 1.00.

3. Which TWO of the following are characteristics of Management Accounts? (Choose two.)

A) Provide information to managers
B) Provide information needed by shareholders
C) Governed by rules and regulations
D) Internally focused
E) Statutory requirement

4. Assume that a unit of output is the cost object. Which of the following statements is valid?

A) Materials consumed in the maintenance of machinery used to manufacture several different products are an example of a direct material cost.
B) Rent paid for a factory in which several different products are produced is an example of an indirect expense.
C) Royalties paid on per unit basis are an example of an indirect expense.
D) The salaries of supervisors who oversee the manufacture of several different products are an example of a direct labour cost.

5. Every month for the last three years, a company has recorded the number of new customers for that month.
The data have been summarised and grouped as follows:

What is the arithmetic mean of the number of new customers per month?

A) 8.50
B) 6.50
C) 6.38
D) 6.22

Solutions: