CIMA CIMAPRA17-BA2-1 Exam Questions Instant Access

Question 1

In responsibility accounting, costs and revenues are grouped according to:

Athe budget holder.

Btheir function.

Cthe service provided.

Dtheir behaviour.

Answer : D

Question 2

Which of the following definitions best describes Zero based budgeting?

AA method of budgeting where an attempt is made to make the expenditure under each cost heading as close to zero as possible

BA method of budgeting whereby all activities are re-evaluated each time a budget is formulated

CA method of budgeting where the sum of revenues and expenditures in each budget centre must equal zero

DA method of budgeting whereby every item of expenditure does not have to be justified before its inclusion in the budget

Answer : B

Question 3

In a manufacturing company which produces a range of products, the wages of a machine operator in the factory would be classified as a:

ADirect labor cost

BIndirect labor cost

CDirect expense

DIndirect expense

Answer : A

Question 4

Which one of the following is NOT a main purpose of management accounting?

APlanning

BControlling

CDecision making

DReporting to shareholders

Answer : D

Question 5

Which of the following categories of costs is the most relevant for decision making?

ACurrent costs

BNotional costs

CEstimated future costs

DCosts already incurred which are known with certainty

Answer : C

Question 6

Which of the following would NOT be an appropriate performance measure for a profit centre manager?

AReturn on capital employed

BContribution per unit

CSales price variance

DGross margin

Answer : B

Question 7

The variable overhead expenditure variance is:

AThe over or under absorbed variable overhead

BThe difference between the actual hours worked and the standard hours produced, multiplied by the variable overhead absorption rate

CThe actual hours worked multiplied by the variable absorption rate

DThe difference between the variable overheads incurred and the flexed budget allowance for variable overheads

Answer : D

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