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CIMA BA2 Exam Syllabus Topics:

CIMA Fundamentals of management accounting Sample Questions:

Question 1

A project is about to be launched. Two of the three possible outcomes and their associated probabilities are as follows:

The remaining possible outcome is a $70,000 gain.
What is the correct calculation of the expected value of the project?

A. ($30,000 + $70,000 - $25,000) / 3
B. ($30,000 + $70,000 - $25,000) x (0.7 + (1.0 - (0.2 + 0.7)) + 0.2)
C. ($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) - ($25,000 x 0.2)
D. ($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) + ($25,000 x 0.2)

Question 2

Which type of budget would be the most suitable for a cash budget?

A. Rolling budget
B. Incremental budget
C. Fixed budget
D. Flexible budget

Question 3

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?

A. $52,687
B. $55,460
C. $53,580
D. $51,764

Question 4

Eton Ltd. operates a manufacturing process that produces product A.
Information for this process last month is as follows:
(a) Opening work in progress - 2,500 kg valued at £2,000 for direct material and £1,500 for labour and overheads.
(b) Materials input - 25,000 kg at £2.10 per kg.
(c) Labour - £10,000
(d) Overheads - £5,000
(e) Output during the month - 20,000 kg
(f) There were 7,500 units of closing work in progress which was complete as to materials and 30% complete as to conversion.
(g) Normal loss for the month was 3% of input and all losses have a scrap value of £1 per kg.
What was the value of closing work in progress at the end of the month (to the nearest £)?

Question 5

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?

A. Only an organisation's shareholders can be considered to be its stakeholders.
B. Anyone with an interest in an organisation can be considered to be one of its stakeholders.
C. Stakeholders must be external to the organisation.
D. Only an organisation's shareholders and employees can be considered to be its stakeholders.

Solutions: