BA2 CIMA Fundamentals of management accounting exact Exam Questions

Fundamentals of management accounting

Last Update 17 hours ago Total Questions : 392

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Question # 1

Refer to the exhibit.

SP, a manufacturing company, uses a standard costing system. The standard variable production overhead cost is based on the following budgeted figures for the year:

During the month of September, 5,300 actual hours were worked and 5,600 standard hours of output were produced. Total variable production overhead costs in September were $8,600.

What was the total variable production overhead variance in September?

$200 adverse

$650 adverse

$650 favourable

$200 favourable

Question # 2

Refer to the exhibit.

Data for October ' s budget for product Quest for the month of October are given below:

Each unit of Quest requires 6kg of raw materials. Strict quality control procedures are applied to the manufacturing process and normal rejection levels are 5% of finished units.

The raw materials purchases budget for the month of October is:

2,134,737 kg

2,136,000 kg

2,129,400 kg

2,130,600 kg

Question # 3

Refer to the Exhibit.

The following forecast cash flows relate to a proposed investment in new delivery vehicles at a total cost of $75,000.

The internal rate of return (IRR) of the proposed investment is (to two decimal places)

Question # 4

Which of the following categories of costs is the most relevant for decision making?

Current costs

Notional costs

Estimated future costs

Costs already incurred which are known with certainty

Question # 5

The net present value (NPV) of an investment is as follows.

NPV at 14% = $6,320

NPV at 18% = ($4,600) negative

The internal rate of return (IRR) of the investment is closest to

14.6%

16.0%

16.3%

20.3%

Question # 6

In an integrated cost and financial accounting system, the accounting entries for the cost of production units completed in the period would be:

Debit: Finished goods control account Credit: Work in progress control account

Debit: Work in progress control account Credit: Finished goods control account

Debit: Cost of sales account Credit: Finished goods control account

Debit: Finished goods control account Credit: Cost of sales account

Question # 7

Refer to the exhibit.

The following data refers to a manufacturing process for the month of July:

The work in progress is completed as follows:

(a) 100% for material

(b) 80% for labour

What is the value of the finished goods?

Question # 8

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

Planning

Controlling

Decision making

Reporting to shareholders

Question # 9

Refer to the exhibit.

A company manufactures a single product, and relevant data is as follows:

Note. Overheads are assumed to be related to direct labor hours.

The actual results for the period were as follows:

What is the variable overhead efficiency variance?

£7,500 favorable

£7,500 adverse

£6,500 favorable

£6,500 adverse

Question # 10

Which of the following best describes a step cost?

A cost which remains constant until activity reaches a critical level; thereafter the cost increases to a higher level and the unit cost remains constant until the next critical activity level is reached.

A cost which increases steadily until activity reaches a critical level; thereafter the cost increases to a higher level and the total cost remains constant until the next critical activity level is reached.

A cost which remains constant until activity reaches a critical level; thereafter the cost increases to a higher level and the total cost remains constant until the next critical activity level is reached.

A cost which increases per unit until activity reaches a critical level; thereafter the cost increases to a higher level and the unit cost remains constant until the next critical activity level is reached.