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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: 5)

BA2 - Fundamentals of Management Accounting PDF — 392 Questions

The variable overhead expenditure variance is:

  1. The over or under absorbed variable overhead
  2. The difference between the actual hours worked and the standard hours produced, multiplied by the variable overhead absorption rate
  3. The actual hours worked multiplied by the variable absorption rate
  4. The difference between the variable overheads incurred and the flexed budget allowance for variable overheads

Answer(s): D



An increase in the variable cost per unit, will cause the point at which the line plotted on a profit/volume (PV) graph intersects the horizontal axis to:

  1. Move to the left
  2. Move to the right
  3. Double
  4. Stay where it is

Answer(s): B



C Ltd produces a chemical in a single process. Information for this process last month is as follows:

(a) Opening work in progress - 10000 kg valued at £10000 for direct material and £7500 for conversion costs.

(b) Materials input - 25000 kg at £1.10 per kg.

(c) Conversion costs - £17000

(d) Output during the month - 23000 kg.

(e) There were 7500 units of closing work in progress which was complete as to materials and 30% complete as to conversion.

(f) Normal loss for the month was 10% of input and all losses have a scrap value of 80p per kg.

What was the average cost per kg of finished output during the month?

  1. £1.10
  2. £1.78
  3. £1.90
  4. £1.99

Answer(s): D



The management accountant has completed the appraisal of an investment in new office equipment.
It has now been discovered that the cost of capital used in the appraisal should have been higher.

What will be the effect on the calculated net present value (NPV) and the payback period?

  1. NPV increase; payback period increase
  2. NPV decrease; payback period decrease
  3. NPV decrease; payback period stay the same
  4. NPV decrease; payback period increase

Answer(s): C



The standard labour cost for 1 component is $15.00 (5 hours at $3 per hour). Last month, 6,000 hours were worked at a cost of $17,000 to produce 1,100 components. The labour efficiency variance was:

  1. $1,500 Adverse
  2. $1,000 Adverse
  3. $1,000 Favourable
  4. $1,500 Favourable

Answer(s): A



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