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CIMA BA2 - Fundamentals of management accounting

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Total 392 questions

You are put in charge of a new, independent factory. The products you produce are cheap to produce but the profit margin is small. Maintaining low costs and maximum efficiency is key.

You are concerned that certain parts of the production line are producing excess waste and damaging profits.

Which type of cost centre would be most useful in this situation?

A.

Activity

B.

Function

C.

Equipment

D.

Service location

Refer to the exhibit.

A company budgeted to provide 700 units of service last period for a budgeted variable overhead cost of $29,400. During the period a total of 790 units of service were provided and the variable overhead cost incurred was $29,660.

For effective control of variable overhead cost which two figures should be compared in the budgetary control statement?

A.

Row A

B.

Row B

C.

Row C

D.

Row D

Which of the following is TRUE regarding the figures given in the table?

A.

Range = 70 years.

B.

Modal group = 50

C.

Median falls into the 30

D.

The youngest customer is 10 years old.

Put simply, the role of the management accountant it to_______.

A.

assess internal information and analyse how it can be used to improve performance in the future.

B.

assess internal information to ensure the company is complying with financial and accountancy regulations.

C.

record and organises last year's transactions and produce financial statements for shareholders.

Which one of the following is NOT a main purpose of management accounting?

A.

Planning

B.

Controlling

C.

Decision making

D.

Reporting to shareholders

A company uses an integrated accounting system.

The accounting entries for depreciation of machinery used for production would be.

A.

Debit: Provision for depreciation accountCredit: Work in progress control account

B.

Debit: Work in progress control accountCredit: Provision for depreciation account

C.

Debit: Production overhead control account Credit: Provision for depreciation account

D.

Debit: Provision for depreciation account Credit: Non-current Assets account

A standard hour is:

A.

A measure of time

B.

A measure of output

C.

The standard time taken to produce one unit

D.

The actual time taken to produce one unit

The wages of a machine operator who is paid by the hour would be described as A.

A.

Fixed cost

B.

Semi-variable cost

C.

Variable cost

D.

Stepped fixed cost

The managing director of a small expanding company has a limited understanding of accounting and has asked you to explain the role of the management accountant in value creation.

Which ONE of the following is NOT a primary role of the management accountant?

A.

Design and implementation of management information systems

B.

Provision of strategic planning information to senior managers

C.

Provision of routine performance information to junior managers

D.

Provision of statutory financial information to the tax authorities

Refer to the exhibit.

Which ONE of the following can be represented by this graph?

A.

A fixed cost – where the vertical axis is cost per unit

B.

A variable cost – where the vertical axis is total cost incurred

C.

A semi-variable cost – where the vertical axis is total cost incurred

D.

A variable cost – where the vertical axis is cost per unit