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CIMA CIMAPRO17-BA2-X1-ENG Exam Syllabus Topics:

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

1. The possible returns and associated probabilities of two independent projects are as follows:

It has been decided that both projects are to be launched.
Which TWO of the following statements are correct? (Choose two.)

A) The expected value of the total return is $40,000 gain.
B) The expected value of the total return is $41,500 gain.
C) The probability of making a total return of exactly $5,000 gain is 0.02.
D) The probability of the total return being a gain is less than 1.00.
E) The probability of the total return being a loss is 0.10.

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

A) Royalties paid on per unit basis are an example of an indirect expense.
B) The salaries of supervisors who oversee the manufacture of several different products are an example of a direct labour cost.
C) Rent paid for a factory in which several different products are produced is an example of an indirect expense.
D) Materials consumed in the maintenance of machinery used to manufacture several different products are an example of a direct material cost.

3. A company which manufactures and sells one product has fixed costs of $80,000 per period. The selling price per unit of $25 generates a contribution/sales ratio of 40%.
How many units would need to be sold in a period to earn a profit of $10,000?

A) 8,000
B) 32,000
C) 36,000
D) 9,000

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

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

5. 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) 44.18%
B) 5.82%
C) 73.89%
D) 94.18%

Solutions: