BA2 CIMA Fundamentals of management accounting exact Exam Questions

Fundamentals of management accounting

Last Update 6 hours ago Total Questions : 392

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Question # 51

The decision rule to use when determining the optimal production plan if there is a scarce resource is:

Maximise profit per unit

Maximise profit per unit of scarce resource

Maximise contribution per unit

Maximise contribution per unit of scarce resource

Question # 52

A company uses standard absorption costing. Budgeted and actual data for the latest period are as follows.

What was the production overhead absorption rate per unit?

$21

$27

$35

$29

Question # 53

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.)

Salary paid to the factory manager.

Factory rent.

Maintenance costs for the company’s only production line.

Commissions paid to the sales team.

Royalties paid to the designers of the products.

Question # 54

Which of the following would NOT require taking into account the time value of money?

Deciding to make a long-term investment in a project on the basis of its payback period.

Selecting an investment project on the basis that it has a positive net present value (NPV).

Calculating the present value of a five-year annuity.

Taking a long-term investment decision on the basis of the project’s internal rate of return (IRR).

Question # 55

Assume that a unit of output is the cost object. Which of the following statements is valid?

Royalties paid on per unit basis are an example of an indirect expense.

Materials consumed in the maintenance of machinery used to manufacture several different products are an example of a direct material cost.

The salaries of supervisors who oversee the manufacture of several different products are an example of a direct labour cost.

Rent paid for a factory in which several different products are produced is an example of an indirect expense.

Question # 56

Refer to the exhibit.

DS is manufacturing company that uses an integrated accounting system. The following payroll data is available for the month of August:

The Employers ' National Insurance for the period was $13,790. An analysis of the wages is as follows:

Which of the following factors affect the budgeted cash flow:

(a) Funds from the issue of share capital

(b) Bank Interest on a long term loan

(d) Bad debt write off

Factors (a), (b), (c) and (d)

Factors (a) and (b) only

Factor (a) only

Factors (b), (c) and (d) only

Question # 57

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

Sufficiently accurate.

Focused on the decision to be made.

Available immediately.

Governed by financial reporting standards.

Question # 58

The forecast costs per unit for a new product are as follows:

The company uses marginal cost plus pricing and all products are required to achieve a 40% margin.

What would be the selling price per unit?

$37.80

$46.20

$45.00

$55.00

Question # 59

A company’s management accountant wishes to calculate the present value of the cost of renting a delivery vehicle. There will be five annual rental payments of $5,000, the first of which is due immediately. The company’s discount rate is 12%.

Which TWO of the following are valid ways to calculate the present value of the rental payments? (Choose two.)

$5,000 + ($5,000 x 3.605)

$5,000 + $5,000/1.12 + $5,000/(1.12)2 + $5,000/(1.12)3 + $5,000/(1.12)4

$5,000/1.12 + $5,000/(1.12)2 + $5,000/(1.12)3 + $5,000/(1.12)4+ $5,000/(1.12)5

$5,000 x 3.605

$5,000 + ($5,000 x 3.037)

Question # 60

The year-to-date results at the end of month 9 included sales revenue of $3,600,000 and variable costs of $2,100,000.

During month 10, sales revenue was $450,000 and variable costs were $270,000.

What year-to-date contribution to sales ratio (C/S ratio) would be reported at the end of month 10?

58,5%

70,9%