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

1. 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:

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. Every month for the last three years, a company has recorded the number of new customers for that month.
The data have been summarised and grouped as follows:

What is the arithmetic mean of the number of new customers per month?

A) 6.22
B) 6.50
C) 6.38
D) 8.50

4. 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?

A) $55.00
B) $37.80
C) $45.00
D) $46.20

5. FILL BLANK
A company absorbs production overhead using a direct labour hour rate. Data for the latest period are as follows:

What is the overhead absorption rate per direct labour hour? Give your answer to one decimal place.

Solutions: