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

1. Based upon extensive historical evidence, a company's daily sales volume is known to be normally distributed with a mean of 1,728 units and a standard deviation of 273 units.
What is the probability that, on any one day, the sales volume will be at least 1,300 units?

A) 94.18%
B) 5.82%
C) 44.18%
D) 73.89%

2. The staffing policy for a supermarket is to have one cashier station open for every forecasted 20 customers per hour. Cashiers are hired by the hour as and when required, and do not perform any other duties.
The cost of the cashiers in relation to the number of customers would be classified as which type of cost?

A) Variable cost
B) Fixed cost
C) Semi-variable cost
D) Stepped fixed cost

3. 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 earlier cash flows are worth more because they can be reinvested.
D) recognises the fact that a cash flow received today will always be worth more than a larger cash flow received in the future.

4. DRAG DROP
A company manufactures three products using the same direct labour which will be in short supply next month.
No inventories are held. Data for the three products are as follows:

The fixed costs are all committed costs and cannot now be altered for the next month.
Place the labels against the correct product to indicate the order of priority for manufacture that will maximise the profit for the next month.
Select and Place:

5. The following data are available for a company that produces and sells a single product.
The company's opening finished goods inventory was 2,500 units.
The fixed overhead absorption rate is $8.00 per unit.
The profit calculated using marginal costing is $16,000.
The profit calculated using absorption costing and valuing its inventory at standard cost is $22,400.
The company's closing finished goods inventory is:

A) 3,300 units
B) 8,900 units
C) 1,700 units
D) 3,900 units

Solutions: