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CIMA BA2 – Fundamentals of Management Accounting Question Tutorial Sample Questions:
1. The concept of the time value of money:
A) is used for making short term decisions.
B) determines the higher interest rates that must be paid on longer term loans.
C) recognises the fact that a cash flow received today will always be worth more than a larger cash flow received in the future.
D) recognises the fact that earlier cash flows are worth more because they can be reinvested.
2. 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.
3. Which of the following statements about batch costing is true?
A) Batch costing must use absorption costing.
B) Batch costing must use marginal costing.
C) The cost of a unit is found by dividing the cost of a batch by the number of units in the batch.
D) The cost of a batch is found by multiplying the cost of one unit by the number of units in the batch.
4. Which of the following would NOT be an appropriate performance measure for a profit centre manager?
A) Gross margin
B) Return on capital employed
C) Contribution per unit
D) Sales price variance
5. Assume that a unit of output is the cost object. Which of the following statements is valid?
A) The salaries of supervisors who oversee the manufacture of several different products are an example of a direct labour cost.
B) Royalties paid on per unit basis are an example of an indirect expense.
C) Materials consumed in the maintenance of machinery used to manufacture several different products are an example of a direct material cost.
D) Rent paid for a factory in which several different products are produced is an example of an indirect expense.
Solutions:
Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: A |