CIMA CIMAPRA17-BA2-1 Exam Questions Instant Access

Question 1

The managing director of a small expanding company has a limited understanding of accounting and has asked you to explain the role of the management accountant in value creation.

Which ONE of the following is NOT a primary role of the management accountant?

ADesign and implementation of management information systems

BProvision of strategic planning information to senior managers

CProvision of routine performance information to junior managers

DProvision of statutory financial information to the tax authorities

Answer : D

Question 2

Which one of the following is an example of operational management information?

AThe annual cash budget

BAn investment appraisal report

CA production schedule for tomorrow

DA flexible budget control report for last month

Answer : C

Question 3

The standard material content of 1 unit of PAJ is 200 (8Kg at 25 per Kg).

During Period 5, 1300 Kg of materials were purchased at a total cost of 35000 and were used to produce 170 units of PAJ.

What was the materials price variance for Period 5?

A2500 Adverse

B1000 Adverse

C1500 Favourable

D4250 Favourable

Answer : A

Question 4

Which one of the following statements about historical cost and economic value is correct?

AThe economic value of an asset will depend on the alternative uses for the asset

BThe historical cost of an asset will always be lower than its economic value

CThe historical cost of an asset reduces as the remaining useful life of the asset reduces

DThe concept of economic value applies only to non-current assets

Answer : A

Question 5

The principal budget factor can be defined as:

AThe factor which has the highest value in the budget

BThe factor which limits the activities of the organisation

CThe factor which is most likely to result in an adverse variance

DThe factor which is least likely to change in the future

Answer : B

Question 6

Refer to the exhibit.

The following budget and actual data are available for last period.

The sales price variance for last period was

A$3,704 adverse

B$10,156 favourable

C$13,356 favourable

D$13,860 favourable

Answer : A

Question 7

Refer to the exhibit.

A company issued its production budget based on an anticipated output of 800 units. Actual output was 1000 units. The details of the costs are shown below:

The budget expenditure variance was:

A5,000 adverse

B3,000 adverse

C1,000 favourable

D5,000 favourable

Answer : C

CIMA BA2 - Fundamentals of Management Accounting CIMAPRA17-BA2-1 Exam Questions