CIMA CIMAPRA17-BA2-1 Exam Questions Instant Access

Question 1

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 2

In a company that manufactures many different products on the same production line, which TWO of the following would NOT be classified as indirect production costs? (Choose two.)

ASalary paid to the factory manager.

BFactory rent.

CMaintenance costs for the company's only production line.

DCommissions paid to the sales team.

ERoyalties paid to the designers of the products.

Answer : A, B

Question 3

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 4

Which of these descriptions most accurately describes a cost centre?

AA cost centre is a location where all costs relating to certain activities and functions are stored.

BA cost centre is an office where costs for a specific activity are stored.

CA cost centre is a location where all costs across the company are consolidated into one account.

Answer : A

Question 5

In an integrated cost and financial accounting system, the accounting entries for the purchase of raw material on credit would be:

ADebit: Payables control account Credit: Cost of sales account

BDebit: Raw material control account Credit: Payables control account

CDebit: Cost of sales account Credit: Payables control account

DDebit: Payables control account Credit: Work in progress control account

Answer : B

Question 6

A company uses an integrated accounting system.

The accounting entries for an issue of indirect materials to production would be:

ADebit: Work in progress control account Credit: Raw material control account

BDebit: Production overhead control account Credit: Raw material control account

CDebit: Finished goods control account Credit: Raw material control account

DDebit: Raw material control account Credit: Work in progress control account

Answer : B

Question 7

In a manufacturing company which produces a range of products, the cost of factory rent and rates would be classified as A.

ADirect expense

BDirect material cost

CIndirect material cost

DIndirect expense

Answer : D

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