CIMA CIMAPRA17-BA2-1 Exam Practice Test Instant Access

Question 1

Which of the following is NOT a characteristic of useful operational level information?

ASufficiently accurate.

BFocused on the decision to be made.

CAvailable immediately.

DGoverned by financial reporting standards.

Answer : C

Question 2

A company uses an integrated accounting system. The following data relate to the latest period.

At the end of the period, the entry in the production overhead control account in respect of under or over absorbed overheads will be:

A$22,672 debit.

B$2,208 credit.

C$2,208 debit.

D$22,672 credit.

Answer : A

Question 3

According to CIMA's Code of Ethics, CIMA members should not allow bias, conflict of interest of the influence of other people to override their professional judgement.

This is an example of:

Aobjectivity.

Bprofessional behaviour.

Cintegrity.

Dprofessional competence and due care.

Answer : A

Question 4

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

Notes.

The 10% increase in production was required to meet unexpected additional sales demand.

The production manager is responsible for negotiating the price of materials with suppliers.

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.)

AThe fixed costs should be flexed to $40,000 + 10% = $44,000.

BThe material quantity should be flexed to 60,000 + 10% = 66,000 kg.

CThe basic pay hours should not be flexed; they should remain at 1,000 hours.

DThe overtime hours should be flexed to (1,000 + 10%) - 900 = 200 hours.

EThe material price should be flexed to the actual figure of $3.10 per kg.

Answer : D, E

Question 5

A company is appraising two projects. Both projects are for five years. Details of the two projects are as follows.

Based on the above information, which of the following statements is correct?

AAn annuity could be used to calculate the net present value of the projects.

BThe annuity factor for project A would be lower than the annuity factor for the project B.

CA perpetuity could be used to calculate the net present value of the projects.

DThe annuity factor for project A would double the annuity factor for project B.

Answer : A

Question 6

The International Federation of Accountants (IFAC) stated that it was important that ''accountants in business'' should understand what the drivers of stakeholder value are. Which of the following statements is valid?

AAnyone with an interest in an organisation can be considered to be one of its stakeholders.

BStakeholders must be external to the organisation.

COnly an organisation's shareholders and employees can be considered to be its stakeholders.

DOnly an organisation's shareholders can be considered to be its stakeholders.

Answer : D

Question 7

Which of the following is a valid definition of a cash budget?

AA detailed budget of estimated cash inflows and outflows incorporating both revenue and capital items.

BA detailed budget of estimated cash inflows only, incorporating receipts from cash sales as well as from credit customers.

CA detailed budget of estimated cash inflows and outflows incorporating revenue items only.

DA detailed budget of estimated cash outflows only, incorporating both depreciation and capital expenditure.

Answer : C

CIMAPRA17-BA2-1 BA2 - Fundamentals of Management Accounting Exam Practice Test

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7