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CIMA BA2 – Fundamentals of Management Accounting Question Tutorial Sample Questions:

1. The staffing policy for a supermarket is to have one cashier station open for every forecasted 20 customers per hour. Cashiers are hired by the hour as and when required, and do not perform any other duties.
The cost of the cashiers in relation to the number of customers would be classified as which type of cost?

A) Semi-variable cost
B) Variable cost
C) Fixed cost
D) Stepped fixed cost

2. A company uses standard absorption costing. Budgeted and actual data for the latest period are as follows.

What was the production overhead absorption rate per unit?

A) $29
B) $27
C) $35
D) $21

3. A company's policy is to hold closing inventory each month equal to 10% of the next month's budgeted sales volume. The budgeted sales volumes of product Q for months 1 and 2 are 1,660 units and 2,300 units respectively.
The production budget for product Q for month 1 is:

A) 1,890 units
B) 1,596 units
C) 1,724 units
D) 1,494 units

4. Data for the latest period for a company which makes and sells a single product are as follows:

There were no budgeted or actual changes in inventories during the period.
The sales volume contribution variance for the period was:

A) $5,666 adverse.
B) $16,000 adverse.
C) $9,267 adverse.
D) $6,220 adverse.

5. 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.)

A) Factory rent.
B) Royalties paid to the designers of the products.
C) Salary paid to the factory manager.
D) Maintenance costs for the company's only production line.
E) Commissions paid to the sales team.

Solutions: