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CIMA BA2 - Fundamentals of Management Accounting BA2 - Fundamentals of Management Accounting Dumps in PDF

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

BA2 - Fundamentals of Management Accounting PDF — 392 Questions

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?

  1. Reduce the margin of safety by 1,178 days
  2. Reduce the margin of safety by 622 days
  3. Increase the margin of safety by 1,178 days
  4. Increase the margin of safety by 622 days

Answer(s): A



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

  1. Direct labour cost
  2. Direct expense
  3. Indirect labour cost
  4. Indirect expense

Answer(s): C



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.

  1. Fixed cost
  2. Semi-variable cost
  3. Variable cost
  4. Stepped fixed cost

Answer(s): B



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.

  1. Under-absorbed by £25,000
  2. Under-absorbed by £9,000
  3. Over-absorbed by £25,000
  4. Over-absorbed by £9,000

Answer(s): C



The variable overhead efficiency variance is:

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

Answer(s): B



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