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CIMA Fundamentals of management accounting Sample Questions:

1. Zelts Ltd earns a contribution of 20% of the selling price for product 'Y'. The annual fixed costs are £200,000.
In order to earn an annual profit of £100,000 the sales revenue needs to be:

A) £1,000,000
B) £300,000
C) £500,000
D) £1,500,000

2. A tomato producer is investigating the correlation between the height of his plants and the size of the tomatoes. He has tallied up his height results and produced this table.

Using the information provided, find the median and modal class and correctly select these answers from the list.

A) Modal class = 40>x>50
B) Modal class = 30<x<40
C) Median = 30<x<40
D) Median = 40<x<50

3. In a manufacturing company which produces a range of products, the cost of factory rent and rates would be classified as A.

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

4. An overtime premium may be defined as:

A) The total number of overtime hours worked
B) A premium paid to workers with special skills
C) The additional payment made during overtime hours
D) The rate of pay at which overtime hours are paid

5. The standard material content of 1 unit of PAJ is £200 (8Kg at £25 per Kg).
During Period 5, 1300 Kg of materials were purchased at a total cost of £35000 and were used to produce 170 units of PAJ.
What was the materials price variance for Period 5?

A) £1500 Favourable
B) £4250 Favourable
C) £1000 Adverse
D) £2500 Adverse

Solutions: