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

1. A sales manager has analysed a sample of 350 sales transactions from the latest period. The manager wishes to investigate:
how many customers made their purchase online using the internet and how many purchased by telephone.
how many were new customers and how many were placing repeat orders.
The following table shows the results of the analysis.

If the pattern of sales occurs next period, the probability of a particular sale being a repeat order placed online is closest to:

A) 0.35
B) 0.40
C) 0.16
D) 0.11

2. Which of the following statements about batch costing is true?

A) The cost of a unit is found by dividing the cost of a batch by the number of units in the batch.
B) Batch costing must use absorption costing.
C) Batch costing must use marginal costing.
D) The cost of a batch is found by multiplying the cost of one unit by the number of units in the batch.

3. The budget and actual cost statements for the production department for the latest period were as follows.

Notes.
1. The 10% increase in production was required to meet unexpected additional sales demand.
2. The production manager is responsible for negotiating the price of materials with suppliers.
3. The normal working time is 900 hours per period. Any overtime worked above these 900 hours is paid at a premium of 50%.
In preparing the flexible budget for the latest period, which TWO of the following statements are correct?
(Choose two.)

A) The fixed costs should be flexed to $40,000 + 10% = $44,000.
B) The overtime hours should be flexed to (1,000 + 10%) - 900 = 200 hours.
C) The material price should be flexed to the actual figure of $3.10 per kg.
D) The material quantity should be flexed to 60,000 + 10% = 66,000 kg.
E) The basic pay hours should not be flexed; they should remain at 1,000 hours.

4. The possible returns and associated probabilities of two independent projects are as follows:

It has been decided that both projects are to be launched.
Which TWO of the following statements are correct? (Choose two.)

A) The expected value of the total return is $41,500 gain.
B) The probability of the total return being a loss is 0.10.
C) The probability of the total return being a gain is less than 1.00.
D) The expected value of the total return is $40,000 gain.
E) The probability of making a total return of exactly $5,000 gain is 0.02.

5. FILL BLANK
A company wishes to compare the variability of its monthly sales revenue in country A with that of country B.
The two countries use different currencies.
The monthly sales revenue for the last 48 months in country A (which is measured in $) has been analysed as follows.

What is the coefficient of variation of this data?
Give your answer as a percentage to one decimal place.

Solutions: