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CIMA Fundamentals of management accounting Sample Questions:

1. Refer to the exhibit.

The budget for product Sentra for the month of August is given below:
* Each unit of Sentra requires 4kg of raw materials.
* The raw materials purchases budget for the month of August is:

A) 496,000 kg
B) 516,000 kg
C) 722,000 kg
D) 512,000 kg

2. A company uses an integrated accounting system.
The accounting entries for depreciation of machinery used for production would be.

A) Debit: Work in progress control accountCredit: Provision for depreciation account
B) Debit: Provision for depreciation accountCredit: Work in progress control account
C) Debit: Production overhead control account Credit: Provision for depreciation account
D) Debit: Provision for depreciation account Credit: Non-current Assets account

3. Refer to the exhibit.

The budget for ORG for the month of September contained the following data:
During the month the actual number of units produced was 1,550. The management accounts showed a direct labour rate variance of $200 adverse and direct labour efficiency of $150 adverse.
The actual direct labour cost in the month was:

4. Within a relevant range of output, the fixed cost per unit of a product will:

A) Reduce as total output increases
B) Increase as total output increases
C) Remain constant as total output increases
D) Impossible to tell without more information

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

A) Indirect expense
B) Direct expense
C) Indirect labor cost
D) Direct labor cost

Solutions: