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CIMA CIMAPRO17-BA2-X1-ENG Exam Syllabus Topics:

SectionWeightObjectives
Decision Making35%- Short-Term Decision Making
  • 1. Break-even analysis
  • 2. Limiting factor analysis
  • 3. Cost-volume-profit analysis
  • 4. Make or buy decisions
- Investment and Strategic Decisions
  • 1. Profit maximisation
  • 2. Investment appraisal techniques
  • 3. Use of accounting information for decision making
The Context of Management Accounting10%- Purpose of Management Accounting
  • 1. Characteristics of financial information
  • 2. Role of the management accountant
  • 3. Relationship between management accountants and managers
  • 4. Need for management accounting
- Role of CIMA
  • 1. Development of management accounting practice
  • 2. Professional body for management accountants
Planning and Control30%- Performance Measurement and Control
  • 1. Variance analysis
  • 2. Standard costing
  • 3. Performance reporting
- Budgeting
  • 1. Preparation of budgets
  • 2. Cash budgets
  • 3. Functional budgets
Costing25%- Absorption and Marginal Costing
  • 1. Overhead allocation and apportionment
  • 2. Profit reconciliation
  • 3. Marginal costing
  • 4. Pricing decisions
  • 5. Full costing
- Cost Identification and Classification
  • 1. Variable, semi-variable, stepped and fixed costs
  • 2. Direct and indirect costs
  • 3. Relevant and irrelevant costs
  • 4. Cost behaviour analysis

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

Question #1

A company produces a single product for which the following cost data are available.

Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs.
What is the marginal cost per unit?

  • A. $9
  • B. $8
  • C. $7
  • D. $6
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #2

The possible returns and associated probabilities of two independent projects are as follows:

It has been decided that both projects are to be launched.
Which TWO of the following statements are correct? (Choose two.)

  • A. The probability of the total return being a gain is less than 1.00.
  • B. The probability of making a total return of exactly $5,000 gain is 0.02.
  • C. The expected value of the total return is $40,000 gain.
  • D. The probability of the total return being a loss is 0.10.
  • E. The expected value of the total return is $41,500 gain.
Reveal Solution  Discussion  0

Correct Answer: A,D  🗳️

Question #3

The budget and actual cost statements for the production department for the latest period were as follows.

Notes.
1. The 10% increase in production was required to meet unexpected additional sales demand.
2. The production manager is responsible for negotiating the price of materials with suppliers.
3. The normal working time is 900 hours per period. Any overtime worked above these 900 hours is paid at a premium of 50%.
In preparing the flexible budget for the latest period, which TWO of the following statements are correct?
(Choose two.)

  • A. The material quantity should be flexed to 60,000 + 10% = 66,000 kg.
  • B. The overtime hours should be flexed to (1,000 + 10%) - 900 = 200 hours.
  • C. The fixed costs should be flexed to $40,000 + 10% = $44,000.
  • D. The material price should be flexed to the actual figure of $3.10 per kg.
  • E. The basic pay hours should not be flexed; they should remain at 1,000 hours.
Reveal Solution  Discussion  0

Correct Answer: B,D  🗳️

Question #4

Which THREE of the following are included in the Global Management Accounting Principles? (Choose three.)

  • A. Accountability
  • B. Integrity
  • C. Value
  • D. Influence
  • E. Professional behaviour
  • F. Relevance
Reveal Solution  Discussion  0

Correct Answer: C,D,F  🗳️

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Question #5

A sales manager has analysed a sample of 350 sales transactions from the latest period. The manager wishes to investigate:
how many customers made their purchase online using the internet and how many purchased by telephone.
how many were new customers and how many were placing repeat orders.
The following table shows the results of the analysis.

If the pattern of sales occurs next period, the probability of a particular sale being a repeat order placed online is closest to:

  • A. 0.40
  • B. 0.16
  • C. 0.35
  • D. 0.11
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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