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

Which of these descriptions most accurately describes a cost centre?

Refer to the exhibit.

ZAP publishes a monthly magazine aimed at the teenage market. It has drawn up a budget for next year as follows:

What selling price would be required for ZAP to break even?

In which industries would idle time not be expected? (Select ALL that apply.)

Refer to the exhibit.

The following standard cost information relates to the production department of Brace Engineering Ltd.

The actual data for the month of March was as follows:

What is the direct labour rate variance (to the nearest whole number)?

Johnson & Smith is a huge corporation with many different departments covering hundreds of activities. They had switched to this new budgeting technique as it seemed as though it would help them allocate their limited funds better.

It was successful to some extent as each manager was required to look at every cost his department accrued. They would then be responsible for coming up with new ways of performing these activities.

It became obvious that certain managers were unable to handle these paperwork intensive demands and so the company will be reverting back to a system that focuses primarily on cost drivers next year.

What budgeting technique will they be using next year?

When sales and output have passed the break-even point, the contribution per unit, for each unit then sold, becomes:

Refer to the exhibit.

PD manufactures a product in a process operation. Normal loss is 5% of input and occurs at the end of the process. The following data is available for the month of August:

*Scrapped units have no value.

*There was no opening or closing work in progress for August.

What was full cost of output to finished goods in August?

Refer to the exhibit.

In this profit/volume graph, which distance indicates the contribution earned at level of activity L?

Refer to the exhibit.

A company manufactures a single product, and relevant data is as follows:

Note. Overheads are assumed to be related to direct labor hours.

The actual results for the period were as follows:

What is the variable overhead efficiency variance?

A company operates an absorption costing system. Overheads are absorbed using a pre-determined absorption rate using labour hours. In the period actual labour hours were 10,600, 400 hours below budget. Actual overheads for the period were 234,680 and there was an under-absorption of overheads of 1,480.

What was the budgeted level of overheads?

The unit data for a product are:

(a) selling price 12

(b) variable cost 6.

If selling prices are reduced by 10% and variable costs are increased by 12.5%, which of the following is the revised profit/volume ratio?

Relevant costs for decision making are.

Refer to the exhibit.

RD operates as shopfitters in the retail industry. Job 265 involves the refit of a major city toy store. The following information is available for the job:

What is the selling price for Job 265?

Which of the following are not advantages of Absorption costing? (Select ALL that apply.)

Which of the following would have an impact on the cash budget?

(a) Change in payables terms

(b) Change in the rate of depreciation

(c) Change in the percentage discount allowed

(d) Change of inventory holding policy