CIMA BA2 – Fundamentals of Management Accounting Question Tutorial : CIMAPRO17-BA2-X1-ENG

CIMAPRO17-BA2-X1-ENG real exams

Exam Code: CIMAPRO17-BA2-X1-ENG

Exam Name: BA2 – Fundamentals of Management Accounting Question Tutorial

Updated: Sep 18, 2026

Q & A: 60 Questions and Answers

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CIMA CIMAPRO17-BA2-X1-ENG Exam Syllabus Topics:

SectionObjectives
Costing Methods- Marginal costing
  • 1. Contribution and break-even analysis
    • 2. Cost-volume-profit (CVP) relationships
      - Absorption costing
      • 1. Inventory valuation
        • 2. Over/under absorption of overheads
          Accounting for Materials, Labour and Overheads- Labour costing
          • 1. Time-based remuneration
            • 2. Labour efficiency and productivity
              - Material control
              • 1. Stock control systems
                • 2. Inventory valuation methods
                  Introduction to Cost Accounting- Cost classification and behavior
                  • 1. Direct and indirect costs
                    • 2. Fixed, variable and semi-variable costs
                      - Cost units and cost centers
                      • 1. Absorption of overheads
                        • 2. Overhead allocation basics
                          Decision Making Techniques- Short-term decision making
                          • 1. Make or buy decisions
                            • 2. Limiting factor analysis
                              - Cost analysis for decisions
                              • 1. Incremental cost analysis
                                • 2. Relevant costing principles
                                  Budgeting and Forecasting- Budgetary control
                                  • 1. Performance monitoring
                                    • 2. Variance analysis basics
                                      - Budget preparation
                                      • 1. Master budgets
                                        • 2. Functional budgets

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

                                          Question #1

                                          A company uses standard absorption costing. Budgeted and actual data for the latest period are as follows.

                                          What was the production overhead absorption rate per unit?

                                          • A. $21
                                          • B. $35
                                          • C. $27
                                          • D. $29
                                          Reveal Solution  Discussion  0

                                          Correct Answer: B  🗳️

                                          Question #2

                                          A company operates an integrated standard cost accounting system. The standard price of raw material A is
                                          $20 per litre. At the start of period 1, the inventory of 500 litres of raw material A was valued at $20 per litre.
                                          During period 1, 100 litres of raw material A were purchased at an actual price of $21 per litre. During period 2,
                                          550 litres of raw material A were issued to Job 789.
                                          In respect of the above events, which TWO of the following statements are correct? (Choose two.)

                                          • A. An adverse material price variance should be recorded in the statement of profit or loss for period 2.
                                          • B. An adverse material price variance should be recorded in the statement of profit or loss for period 1.
                                          • C. The raw material inventory at the end of period 1 should include 100 litres valued at $21 per litre.
                                          • D. The raw material inventory at the end of period 2 should be valued at $20 per litre.
                                          • E. The first 500 litres of raw material A issued should be debited to the Job 789 account at $20 per litre, and the remaining 50 litres at $21 per litre.
                                          Reveal Solution  Discussion  0

                                          Correct Answer: A,E  🗳️

                                          Question #3

                                          Which of the following is a valid definition of a cash budget?

                                          • A. A detailed budget of estimated cash inflows and outflows incorporating revenue items only.
                                          • B. A detailed budget of estimated cash inflows only, incorporating receipts from cash sales as well as from credit customers.
                                          • C. A detailed budget of estimated cash outflows only, incorporating both depreciation and capital expenditure.
                                          • D. A detailed budget of estimated cash inflows and outflows incorporating both revenue and capital items.
                                          Reveal Solution  Discussion  0

                                          Correct Answer: A  🗳️

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                                          Question #4

                                          DRAG DROP
                                          A company manufactures three products using the same direct labour which will be in short supply next month.
                                          No inventories are held. Data for the three products are as follows:

                                          The fixed costs are all committed costs and cannot now be altered for the next month.
                                          Place the labels against the correct product to indicate the order of priority for manufacture that will maximise the profit for the next month.
                                          Select and Place:

                                          Reveal Solution  Discussion  0

                                          Correct Answer:

                                          Question #5

                                          A company which manufactures and sells one product has fixed costs of $80,000 per period. The selling price per unit of $25 generates a contribution/sales ratio of 40%.
                                          How many units would need to be sold in a period to earn a profit of $10,000?

                                          • A. 32,000
                                          • B. 36,000
                                          • C. 8,000
                                          • D. 9,000
                                          Reveal Solution  Discussion  0

                                          Correct Answer: A  🗳️

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