CIMA Fundamentals of management accounting (BA2) Free Practice Test
Question 1
A new range of clothing is very unique and will not appeal everyone. You are aware that if you were to equally distribute all the units there is a chance that they would not all sell.
You decide that the best option would be to select specific stores in which to sell the items, making them rare and desirable. This way they will become highly sought after.
However, whilst this has the potential to be very profitable it also has the lowest probability.
By making this decision you are considered to be_______.
You decide that the best option would be to select specific stores in which to sell the items, making them rare and desirable. This way they will become highly sought after.
However, whilst this has the potential to be very profitable it also has the lowest probability.
By making this decision you are considered to be_______.
Correct Answer: C
Question 2
Refer to the exhibit.
The following details were recorded for product 'Moe' for period 2:
What was the direct labor efficiency variance?
The following details were recorded for product 'Moe' for period 2:
What was the direct labor efficiency variance?
Correct Answer: D
Question 3
Refer to the exhibit.
Storm Limited manufactures a single product, the cost and selling price of which are given below:
The breakeven point is:
Storm Limited manufactures a single product, the cost and selling price of which are given below:
The breakeven point is:
Correct Answer:
12500 units.
Question 4
Refer to the exhibit.
Vertical axis = £; horizontal axis = level of activity
This graph is known as a:
Vertical axis = £; horizontal axis = level of activity
This graph is known as a:
Correct Answer: A
Question 5
Refer to the exhibit.
The budget for WP for the month of September contained the following data:
During the month the actual number of units produced was 1,860. The management accounts showed a direct material price variance of $1,200F and direct material usage variance of $180A. The direct materials purchased were 1,200 kg.
The actual quantity of material used in the month was
The budget for WP for the month of September contained the following data:
During the month the actual number of units produced was 1,860. The management accounts showed a direct material price variance of $1,200F and direct material usage variance of $180A. The direct materials purchased were 1,200 kg.
The actual quantity of material used in the month was
Correct Answer:
960 kg
Question 6
Which of the following categories of costs is the most relevant for decision making?
Correct Answer: A
Question 7
The managing director of a small expanding company has made a number of statements about CIMA's role in relation to its members and to worldwide organizations.
Which ONE of the following statements is NOT correct?
Which ONE of the following statements is NOT correct?
Correct Answer: D
Question 8
Refer to the exhibit.
RD operates as shopfitters in the retail industry. Job 265 involves the refit of a major city toy store. The following information is available for the job:
What is the selling price for Job 265?
RD operates as shopfitters in the retail industry. Job 265 involves the refit of a major city toy store. The following information is available for the job:
What is the selling price for Job 265?
Correct Answer: D
Question 9
Refer to the exhibit.
ZAP publishes a monthly magazine aimed at the teenage market. It has drawn up a budget for next year as follows:
What selling price would be required for ZAP to break even?
ZAP publishes a monthly magazine aimed at the teenage market. It has drawn up a budget for next year as follows:
What selling price would be required for ZAP to break even?
Correct Answer: A
Question 10
Refer to the exhibit.
Budget information for 'Crome Ltd' is as follows:
The budgeted cost allowance for the sale of 1000 units would be:
Budget information for 'Crome Ltd' is as follows:
The budgeted cost allowance for the sale of 1000 units would be:
Correct Answer: C
Question 11
Refer to the Exhibit.
A company operates a batch costing system.
Production overhead costs are absorbed into the cost of batches using a direct labour hour rate. Other overhead costs are absorbed at a rate of 20% of total production cost. The company adds a mark-up of 10% to total cost in order to derive its selling prices.
Budgeted production overheads for the period are $44,000 and the budgeted level of activity is 8,800 direct labour hours.
The following data are available for batch number 309:
The required selling price per unit (to two decimal places) is:
A company operates a batch costing system.
Production overhead costs are absorbed into the cost of batches using a direct labour hour rate. Other overhead costs are absorbed at a rate of 20% of total production cost. The company adds a mark-up of 10% to total cost in order to derive its selling prices.
Budgeted production overheads for the period are $44,000 and the budgeted level of activity is 8,800 direct labour hours.
The following data are available for batch number 309:
The required selling price per unit (to two decimal places) is:
Correct Answer:
$28.60
Question 12
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 = 36,427x2 = 1,144
Using least squares regression analysis, calculate the variable cost per tonne delivered. Give your answer to the nearest cent.
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 = 36,427x2 = 1,144
Using least squares regression analysis, calculate the variable cost per tonne delivered. Give your answer to the nearest cent.
Correct Answer:
-128.10