CIMA CIMAPRA17-BA2-1 Exam Questions Instant Access

Question 1

Fixed costs can best be described as:

ACosts which are difficult to budget accurately

BCosts which remain constant, within a relevant range, when activity levels change

CCosts which never change

DCosts which are uncontrollable

Answer : B

Question 2

Which THREE of the following costs would normally be classified as semi-variable?

AWages of a waitress paid a fixed rate per hour

BSalary of a sales executive paid a basic salary and a bonus based on sales level

CAdvertising costs

DCost of renting a photocopier which is a fixed rental fee plus a charge per copy made

ETelephone costs

FRoyalties paid per unit produced

Answer : B, D, E

Question 3

Refer to the exhibit.

A company has the following budget information for next year:

The budgeted profit for the year is

A$85,400

B$81,200

C$72,400

D$76,600

Answer : D

Question 4

Refer to the exhibit.

Which of the following journal entries are required to record the wages payable?

The journal entries required to record the wages payable are:

Answer : A

Question 5

The net present value (NPV) of an investment is as follows.

NPV at 14% = $6,320

NPV at 18% = ($4,600) negative

The internal rate of return (IRR) of the investment is closest to

A14.6%

B16.0%

C16.3%

D20.3%

Answer : C

Question 6

If the fixed costs are increased, the point at which the line plotted on a profit/volume (PV) graph cuts the horizontal axis will:

ADouble

BMove to the left

CStay the same

DMove to the right

Answer : D

Question 7

The wages of a machine operator who is paid a guaranteed minimum wage plus a bonus for each unit produced would be described as A.

AFixed cost

BSemi-variable cost

CVariable cost

DStepped fixed cost

Answer : B

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