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CIMA CIMAPRO17-BA2-X1-ENG Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Costing | 25% | - Absorption and marginal costing - Materials, labour and overhead costing - Activity-based costing - Process costing and joint products - Cost classification and behaviour |
| Decision Making | 35% | - Cost-volume-profit analysis - Pricing decisions - Capital investment appraisal - Risk and uncertainty in decision making - Relevant costing for short-term decisions |
| Planning and Control | 30% | - Budgeting concepts and preparation - Flexible budgets and standard costing - Reporting for control and performance measurement - Variance analysis |
| The Context of Management Accounting | 10% | - Role of management accounting - Comparison with financial accounting - Business environment and organizational structure - CIMA code of ethics |
CIMA BA2 – Fundamentals of Management Accounting Question Tutorial Sample Questions:
1. Which of the following is NOT a valid purpose of budgeting?
A) To comply with financial reporting requirements.
B) To coordinate the different activities of an organisation.
C) To communicate targets to managers.
D) To authorise managers to incur expenditure.
2. 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 competence and due care.
B) professional behaviour.
C) objectivity.
D) integrity.
3. An organisation's management report contains the following data:
Which division has the highest operating margin percentage?
A) Division D
B) Division B
C) Division A
D) Division C
4. A new product requires an investment of $200,000 in machinery and working capital. The total sales volume over the product's life will be 5,000 units. The forecast costs per unit throughout the product's life are as follows:
The product is required to earn a return on investment of 35%.
What unit selling price needs to be achieved?
A) $47.00
B) $50.77
C) $54.00
D) $44.55
5. A company makes and sells a range of products. The standard details per unit for one of these products, product X, are as follows.
To meet sales demand, the company must obtain 2,000 units of product X next month. There is sufficient labour capacity to produce 1,500 of these units in-house during normal time. However, any production above this level would require overtime working which would be paid at a premium of 50%.
The company can buy as many units of product X as it wishes next month from an external supplier at a price of $120 per unit.
What is the total financial benefit to the company of purchasing the appropriate number of units from the external supplier rather than producing them in-house?
A) $20,000
B) $27,500
C) $30,000
D) $5,000
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: D |



