CIMA CIMAPRA17-BA2-1 Exam Questions Instant Access

Question 1

The managing director of a small expanding company has asked you to discuss the positioning of management accounting within his organization.

Which of the following would you suggest is an advantage of the management accountant taking on a business partnering role within the organization?

(i) It is easier for the management accountant to remain objective in decision making situations

(ii) The management accountant is an integral part of the business

(iii) It is easier to build strong relationships between the managers and the management accountant

A(i) only

B(i) and (ii)

C(ii) and (iii)

D(i), (ii) and (iii)

Answer : C

Question 2

An increase in the variable cost per unit, will cause the point at which the line plotted on a profit/volume (PV) graph intersects the horizontal axis to:

AMove to the left

BMove to the right

CDouble

DStay where it is

Answer : B

Question 3

Which one of the following is a characteristic of strategic financial information?

ADetailed and accurate

BProvided mainly to junior managers

CProvided daily to keep managers informed

DProvides information for long term decision making

Answer : D

Question 4

In an integrated accounting system, the accounting entries for over absorption of production overheads would be.

ADebit: Income statement Credit: Work in progress control account

BDebit: Finished Goods control account Credit: Income statement

CDebit: Production overhead control account Credit: Income statement

DDebit: Finished goods control account Credit: Production overhead control account

Answer : C

Question 5

Refer to the exhibit.

Xpert Ltd uses a standard costing system and therefore values all inventory at standard cost. During period 7, the price paid for material 'Z' was 2 per kg more than the standard price.

The following information for material 'Z' relates to period 7:

What was the material price variance for 'Z' in period 7?

A2 adverse

B40 adverse

C400 adverse

D500 adverse

Answer : D

Question 6

Which of the following are not advantages of Absorption costing? (Select ALL that apply.)

AThe key benefit of absorption costing is that it recognises both fixed and variable overheads are necessary for production to occur.

BThe key benefit of absorption costing is that it cannot be manipulated by production changes.

CThe key benefit of absorption is that it helps management in making short term decisions.

Answer : B, C

Question 7

A manufacturing company has four production departments. Overheads have been apportioned between them as follows:

It takes each department 4 hours, 4 hours, 2 hours and 3 hours respectively to produce the company's only product. The company recovers costs on the basis of labour hours. They plan to produce 6,000 units

What will the overhead absorption rate per unit be in 's?

Select the correct answer from the choices below

A7.50

B7.90

C7JO

D8.00

Answer : A

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