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

1. Which of the following would NOT be an appropriate performance measure for a profit centre manager?

A) Contribution per unit
B) Sales price variance
C) Return on capital employed
D) Gross margin

2. A company is appraising two projects. Both projects are for five years. Details of the two projects are as follows.

Based on the above information, which of the following statements is correct?

A) The annuity factor for project A would double the annuity factor for project B.
B) The annuity factor for project A would be lower than the annuity factor for the project B.
C) A perpetuity could be used to calculate the net present value of the projects.
D) An annuity could be used to calculate the net present value of the projects.

3. A company that uses standard costing wishes to reconcile the difference between the profit for a period calculated using absorption costing with that calculated using marginal costing.
Which TWO of the following will NOT help with this reconciliation? (Choose two.)

A) The actual fixed production overheads.
B) The opening inventory.
C) The fixed production overhead absorption rate.
D) The under or over absorbed fixed production overheads.
E) The closing inventory.

4. In responsibility accounting, costs and revenues are grouped according to:

A) their behaviour.
B) the budget holder.
C) the service provided.
D) their function.

5. According to CIMA's Code of Ethics, CIMA members should not allow bias, conflict of interest of the influence of other people to override their professional judgement.
This is an example of:

A) objectivity.
B) professional behaviour.
C) integrity.
D) professional competence and due care.

Solutions: