BA2 - Fundamentals of Management Accounting Exam Questions PDF download

QUESTION: 61 Exam Topic: 1, Exam Pool A

Refer to the exhibit.

X Enterprises runs a private nursing home for the elderly. The company are concerned that bed occupancy rates have been falling over the past 2 years with a consequential effect on profit. They have drawn up a budget for next year as follows:

The nursing home currently charges $90 per patient day.

The nursing home operates at 7,500 patient days per year. In an effort to increase occupancy rates the company are proposing to reduce the current price by 10% and increase spending on advertising by $10,000 each year. What effect will this have on the margin of safety?

Reduce the margin of safety by 1,178 days
Reduce the margin of safety by 622 days
Increase the margin of safety by 1,178 days
Increase the margin of safety by 622 days

Answer(s): A

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QUESTION: 62 Exam Topic: 1, Exam Pool A

In a manufacturing company which produces a range of products, the production manager's salary would be classified as A.

Direct labour cost
Direct expense
Indirect labour cost
Indirect expense

Answer(s): C

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QUESTION: 63 Exam Topic: 1, Exam Pool A

The wages of a machine operator who is paid a guaranteed minimum wage plus a bonus for each unit produced would be described as A.

Fixed cost
Semi-variable cost
Variable cost
Stepped fixed cost

Answer(s): B

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QUESTION: 64 Exam Topic: 1, Exam Pool A

SP Limited operates an absorption costing system. It uses a predetermined overhead absorption rate based on machine hours. Budgeted factory overheads for the year were £1,080,000 but actual overhead incurred was £1,046,000. Budgeted machine hours were 120,000 and actual machine hours were 119,000.

Overheads for the period were.

Under-absorbed by £25,000
Under-absorbed by £9,000
Over-absorbed by £25,000
Over-absorbed by £9,000

Answer(s): C

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QUESTION: 65 Exam Topic: 1, Exam Pool A

The variable overhead efficiency variance is:

The same as the direct labour efficiency variance
The difference between the actual hours worked and the standard hours produced, multiplied by the variable overhead absorption rate
The difference between the actual variable overheads incurred and those absorbed
The actual hours worked multiplied by the variable overhead absorption rate

Answer(s): B

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CIMA BA2 - Fundamentals of Management Accounting BA2 - Fundamentals of Management Accounting Exam Questions in PDF

Free CIMA BA2 - Fundamentals of Management Accounting Dumps Questions (page: 13)

QUESTION: 61 Exam Topic: 1, Exam Pool A

QUESTION: 62 Exam Topic: 1, Exam Pool A

QUESTION: 63 Exam Topic: 1, Exam Pool A

QUESTION: 64 Exam Topic: 1, Exam Pool A

QUESTION: 65 Exam Topic: 1, Exam Pool A