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

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

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

2. Based upon extensive historical evidence, a company's daily sales volume is known to be normally distributed with a mean of 1,728 units and a standard deviation of 273 units.
What is the probability that, on any one day, the sales volume will be at least 1,300 units?

A) 94.18%
B) 73.89%
C) 5.82%
D) 44.18%

3. FILL BLANK
A company has three production departments X, Y and Z, and one service department.
The service department's overhead has been apportioned to the production departments in the ratio 3:2:5. As a result of this apportionment, $2,070 was given to Department Y.
What is the amount of service department overhead that would have been apportioned to Department Z? Give your answer to the nearest dollar.

4. A company produces a single product for which the following cost data are available.

Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs.
What is the marginal cost per unit?

A) $9
B) $8
C) $7
D) $6

5. A small airport's management accountant has prepared the following management report on the performance of its four retail outlets.

Which retail outlet has the highest contribution per square metre?

A) Outlet A
B) Outlet D
C) Outlet C
D) Outlet B

Solutions: