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

1. A company's policy is to hold closing inventory each month equal to 10% of the next month's budgeted sales volume. The budgeted sales volumes of product Q for months 1 and 2 are 1,660 units and 2,300 units respectively.
The production budget for product Q for month 1 is:

A) 1,494 units
B) 1,724 units
C) 1,596 units
D) 1,890 units

2. 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 A
B) Outlet B
C) Outlet D
D) Outlet C

3. A management accountant has forecast the following cash inflows from four potential projects.

All four projects require the same initial investment and will last for four years. They all result in a positive net present value but only one of the projects can be undertaken.
Which project should be selected?

A) Project C
B) Project A
C) Project B
D) Project D

4. FILL BLANK
A company uses full cost pricing. The unit costs for product Z are given below.

What price per unit should be charged in order to achieve a profit margin of 20%?
Give your answer to the nearest cent.

5. Data for the latest period for a company which makes and sells a single product are as follows:

There were no budgeted or actual changes in inventories during the period.
The variable overhead expenditure variance for the period was:

A) $2,202 favourable.
B) $462 adverse.
C) $462 favourable.
D) $2,202 adverse.

Solutions: