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CIMA BA2 - Fundamentals of management accounting

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Total 392 questions

Which of the following is NOT a characteristic of useful operational level information?

A.

Sufficiently accurate.

B.

Focused on the decision to be made.

C.

Available immediately.

D.

Governed by financial reporting standards.

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

A.

Finished goods inventory budget.

B.

Budgeted statement of profit or loss.

C.

Cash flow budget.

D.

Sales budget.

E.

Administration overhead budget.

F.

Budgeted statement of financial position.

Based upon extensive historical evidence, a company’s daily sales volume is known to be normally distributed with a mean of 1,728 units and a standard deviation of 273 units.

What is the probability that, on any one day, the sales volume will be at least 1,300 units?

A.

5.82%

B.

73.89%

C.

44.18%

D.

94.18%

A new product requires an investment of $200,000 in machinery and working capital. The total sales volume over the product’s life will be 5,000 units. The forecast costs per unit throughout the product’s life are as follows:

The product is required to earn a return on investment of 35%.

What unit selling price needs to be achieved?

A.

$54.00

B.

$50.77

C.

$47.00

D.

$44.55

Overhead absorption is best described as:

A.

The identification of costs specifically attributable to a particular cost centre

B.

The process of sharing costs amongst two or more cost centres

C.

The charging of overheads to cost units produced

D.

The identification of overhead cost variances

Refer to the exhibit.

The following standard cost information relates to the production department of BE Ltd.

The actual data for the month of March was as follows:

What is the direct labour efficiency variance (to the nearest whole number)?

A.

£6,250 favourable

B.

£6,250 adverse

C.

£6,406 favourable

D.

£6,406 adverse

Which of the following are NOT behavioural aspects of budgetary controls? (Select ALL that apply.)

A.

Motivation

B.

Irrational spending

C.

Budget negotiation

D.

Short term focus

E.

Competitiveness

F.

Long term focus

Place the following budgets in the order that they would be prepared. Assume that sales volume is the principal budget factor:

(a) Production

(b) Materials usage

(c) Sales

(d) Materials purchases

A.

(a), (c), (b), (d)

B.

(a), (c), (d), (b)

C.

(c), (a), (b), (d)

D.

(c), (a), (d), (b)

Refer to the exhibit.

Which type of cost do the following figures represent?

A.

Curvi-linear

B.

Fixed

C.

Semi-variable

D.

Variable

Over absorption of overhead will always arise when:

A.

actual overhead incurred is lower than budgeted overhead

B.

actual overhead incurred is lower than absorbed overhead

C.

absorbed overhead is lower than actual overhead incurred

D.

absorbed overhead is higher than budgeted overhead