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

1. Which of the following statements about batch costing is true?

A) Batch costing must use absorption costing.
B) The cost of a batch is found by multiplying the cost of one unit by the number of units in the batch.
C) The cost of a unit is found by dividing the cost of a batch by the number of units in the batch.
D) Batch costing must use marginal costing.

2. DRAG DROP
A company manufactures three products using the same direct labour which will be in short supply next month.
No inventories are held. Data for the three products are as follows:

The fixed costs are all committed costs and cannot now be altered for the next month.
Place the labels against the correct product to indicate the order of priority for manufacture that will maximise the profit for the next month.
Select and Place:

3. The following is an extract from a budgetary control report for the latest period:

The budget variance for prime cost is:

A) $3,260 favourable
B) $18,580 adverse
C) $3,260 adverse
D) $3,340 adverse

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

A) Sufficiently accurate.
B) Governed by financial reporting standards.
C) Available immediately.
D) Focused on the decision to be made.

5. 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) Royalties paid on per unit basis are an example of an indirect expense.
C) The salaries of supervisors who oversee the manufacture of several different products are an example of a direct labour cost.
D) Rent paid for a factory in which several different products are produced is an example of an indirect expense.

Solutions: