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

1. The following is an extract from a budgetary control report for the latest period:

The budget variance for prime cost is:

A) $18,580 adverse
B) $3,260 adverse
C) $3,340 adverse
D) $3,260 favourable

2. A company's policy is to hold closing inventory each month equal to 10% of the next month's budgeted sales volume. The budgeted sales volumes of product Q for months 1 and 2 are 1,660 units and 2,300 units respectively.
The production budget for product Q for month 1 is:

A) 1,494 units
B) 1,596 units
C) 1,890 units
D) 1,724 units

3. The year-to-date results at the end of month 9 included sales revenue of $3,600,000 and variable costs of
$2,100,000.
During month 10, sales revenue was $450,000 and variable costs were $270,000.
What year-to-date contribution to sales ratio (C/S ratio) would be reported at the end of month 10?

A) 41,5%
B) 40,0%
C) 58,5%
D) 70,9%

4. According to CIMA's Code of Ethics, CIMA members should not allow bias, conflict of interest of the influence of other people to override their professional judgement.
This is an example of:

A) professional behaviour.
B) objectivity.
C) integrity.
D) professional competence and due care.

5. Which THREE of the following are parts of the master budget? (Choose three.)

A) Sales budget.
B) Budgeted statement of profit or loss.
C) Budgeted statement of financial position.
D) Administration overhead budget.
E) Cash flow budget.
F) Finished goods inventory budget.

Solutions: