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

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

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

2. In responsibility accounting, costs and revenues are grouped according to:

A) their function.
B) their behaviour.
C) the budget holder.
D) the service provided.

3. The forecast costs per unit for a new product are as follows:

The company uses marginal cost plus pricing and all products are required to achieve a 40% margin.
What would be the selling price per unit?

A) $46.20
B) $45.00
C) $37.80
D) $55.00

4. 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) 5.82%
B) 73.89%
C) 94.18%
D) 44.18%

5. Which of the following would NOT be an appropriate performance measure for a profit centre manager?

A) Contribution per unit
B) Sales price variance
C) Gross margin
D) Return on capital employed

Solutions: