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

1. 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.

2. 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) $6
B) $7
C) $8
D) $9

3. The following is an extract from a budgetary control report for the latest period:

The budget variance for prime cost is:

A) $3,260 favourable
B) $18,580 adverse
C) $3,340 adverse
D) $3,260 adverse

4. FILL BLANK
A company uses full cost pricing. The unit costs for product Z are given below.

What price per unit should be charged in order to achieve a profit margin of 20%?
Give your answer to the nearest cent.

5. In a company that manufactures many different products on the same production line, which TWO of the following would NOT be classified as indirect production costs? (Choose two.)

A) Factory rent.
B) Salary paid to the factory manager.
C) Commissions paid to the sales team.
D) Maintenance costs for the company's only production line.
E) Royalties paid to the designers of the products.

Solutions: