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

1. FILL BLANK
The records of a manufacturing company show the following relationship between total cost and output.

The budgeted output for Period 3 is 27,000 units. Assume that previous cost behaviour patterns will continue.
What is the total budgeted cost for Period 3?
Give your answer in the nearest whole number.

2. Which of the following is a relevant cost?

A) An incremental cost
B) A historical cost
C) A committed cost
D) A sunk cost

3. An organisation's management report contains the following data:

Which division has the highest operating margin percentage?

A) Division C
B) Division D
C) Division A
D) Division B

4. FILL BLANK
The following data are available for a delivery company. The table shows the number of tonnes delivered (x) and the associated distribution cist (y) in recent periods.

Further analysis of this data has determined the following:
∑xy = 36,427 ∑x2 = 1,144
Using least squares regression analysis, calculate the variable cost per tonne delivered. Give your answer to the nearest cent.

5. A company uses an integrated accounting system. The following data relate to the latest period.

At the end of the period, the entry in the production overhead control account in respect of under or over absorbed overheads will be:

A) $22,672 credit.
B) $22,672 debit.
C) $2,208 debit.
D) $2,208 credit.

Solutions: