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

1. In a company that manufactures many different products on the same production line, which TWO of the following would NOT be classified as indirect production costs? (Choose two.)

A) Factory rent.
B) Maintenance costs for the company's only production line.
C) Commissions paid to the sales team.
D) Royalties paid to the designers of the products.
E) Salary paid to the factory manager.

2. A company that uses standard costing wishes to reconcile the difference between the profit for a period calculated using absorption costing with that calculated using marginal costing.
Which TWO of the following will NOT help with this reconciliation? (Choose two.)

A) The under or over absorbed fixed production overheads.
B) The actual fixed production overheads.
C) The closing inventory.
D) The opening inventory.
E) The fixed production overhead absorption rate.

3. A company has two production departments and two service departments (Maintenance and Stores). The overhead costs of each of the departments are as follows.

The following equations represent the reapportionment of each of the service department overheads to the other.
M = 4,700 + 0.1S
S = 5,800 + 0.2M
Where M = total Maintenance overhead after reapportionment from Stores
S = total Stores overhead after reapportionment from Maintenance
60% of the total Maintenance overhead and 50% of the total Stores overhead are to be apportioned to Production Department 1.
The total production overhead for Production Department 1 after reapportionment of the service departments' overhead costs is closest to:

A) $71,672
B) $71,821
C) $75,500
D) $70,720

4. Which type of budget would be the most suitable for a cash budget?

A) Flexible budget
B) Incremental budget
C) Rolling budget
D) Fixed budget

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

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

Solutions: