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

1. Data for the latest period for a company which makes and sells a single product are as follows:

There were no budgeted or actual changes in inventories during the period.
The variable overhead expenditure variance for the period was:

A) $2,202 favourable.
B) $2,202 adverse.
C) $462 favourable.
D) $462 adverse.

2. The International Federation of Accountants (IFAC) stated that it was important that "accountants in business" should understand what the drivers of stakeholder value are. Which of the following statements is valid?

A) Only an organisation's shareholders and employees can be considered to be its stakeholders.
B) Anyone with an interest in an organisation can be considered to be one of its stakeholders.
C) Stakeholders must be external to the organisation.
D) Only an organisation's shareholders can be considered to be its stakeholders.

3. A small airport's management accountant has prepared the following management report on the performance of its four retail outlets.

Which retail outlet has the highest contribution per square metre?

A) Outlet B
B) Outlet C
C) Outlet D
D) Outlet A

4. Which of the following is a relevant cost?

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

5. Which of the following is NOT a valid purpose of budgeting?

A) To comply with financial reporting requirements.
B) To communicate targets to managers.
C) To authorise managers to incur expenditure.
D) To coordinate the different activities of an organisation.

Solutions: