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

1. A company which manufactures and sells one product has fixed costs of $80,000 per period. The selling price per unit of $25 generates a contribution/sales ratio of 40%.
How many units would need to be sold in a period to earn a profit of $10,000?

A) 36,000
B) 32,000
C) 9,000
D) 8,000

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.)

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

3. Which THREE of the following are included in the Global Management Accounting Principles? (Choose three.)

A) Accountability
B) Integrity
C) Relevance
D) Influence
E) Professional behaviour
F) Value

4. FILL BLANK
A company uses full cost pricing. The unit costs for product Z are given below.

What price per unit should be charged in order to achieve a profit margin of 20%?
Give your answer to the nearest cent.

5. A company that uses standard costing wishes to reconcile the difference between the profit for a period calculated using absorption costing with that calculated using marginal costing.
Which TWO of the following will NOT help with this reconciliation? (Choose two.)

A) The under or over absorbed fixed production overheads.
B) The fixed production overhead absorption rate.
C) The closing inventory.
D) The actual fixed production overheads.
E) The opening inventory.

Solutions: