BA2 - Fundamentals of Management Accounting Exam Questions in PDF and Online

QUESTION: 6 Exam Topic: 1, Exam Pool A

The materials price variance will be adverse when:

The actual cost of the materials is more than the standard material cost for the output produced
The actual cost of the materials purchased is more than the standard cost of the materials purchased
The materials usage variance is favourable
The price of materials has fallen

Answer(s): B

QUESTION: 7 Exam Topic: 1, Exam Pool A

CORRECT TEXT

CVP Limited manufactures a single product with a selling price of $25.60. Fixed costs are $122,880 per month and the product has a profit/volume ratio of 40%.
In a month when actual sales were $358,400, CVP's margin of safety in units was

1996

Answer(s): A

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QUESTION: 8 Exam Topic: 1, Exam Pool A

A company operates an absorption costing system. Overheads are absorbed using a pre- determined absorption rate using labour hours. In the period actual labour hours were 10,600, 400 hours below budget. Actual overheads for the period were £234,680 and there was an under-absorption of overheads of £1,480.

What was the budgeted level of overheads?

£242,000
£233,200
£245,072
£224,720

Answer(s): A

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QUESTION: 9 Exam Topic: 1, Exam Pool A

The net present value (NPV) of an investment is as follows.

NPV at 14% = $6,320

NPV at 18% = ($4,600) negative

The internal rate of return (IRR) of the investment is closest to

14.6%
16.0%
16.3%
20.3%

Answer(s): C

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QUESTION: 10 Exam Topic: 1, Exam Pool A

Refer to the Exhibit.

AM Ltd. makes and sells a single product for which the standard cost information is as follows:

Budgeted production for the period is 30000 units. The actual results for the period were as follows:

What is the variable overhead expenditure variance?

13,161 adverse
13,161 favourable
13,600 adverse
13,600 favourable

Answer(s): D

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

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QUESTION: 6 Exam Topic: 1, Exam Pool A

QUESTION: 7 Exam Topic: 1, Exam Pool A

QUESTION: 8 Exam Topic: 1, Exam Pool A

QUESTION: 9 Exam Topic: 1, Exam Pool A

QUESTION: 10 Exam Topic: 1, Exam Pool A