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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: 7)

BA2 - Fundamentals of Management Accounting PDF — 392 Questions

In the process account, the accounting treatment of the value of the abnormal loss is:

  1. Credit Process account Debit Abnormal Loss account
  2. Debit Process account Credit Abnormal Loss account
  3. Credit Process account Debit Normal Loss account
  4. Debit Process account Credit Normal Loss account

Answer(s): A



A company can increase its margin of safety by which of the following independent actions?

(a) Increasing sales and production

(b) Raising the selling price per unit

(c) Raising the variable cost per unit

(d) Lowering fixed costs

  1. (a) and (b) only
  2. (a), (b) and (c) only
  3. (a), (b) and (d) only
  4. (a), (c) and (d) only

Answer(s): C



CORRECT TEXT

Refer to the Exhibit.



A company operates a batch costing system.
Production overhead costs are absorbed into the cost of batches using a direct labour hour rate. Other overhead costs are absorbed at a rate of 20% of total production cost. The company adds a mark-up of 10% to total cost in order to derive its selling prices.

Budgeted production overheads for the period are $44,000 and the budgeted level of activity is 8,800 direct labour hours.

The following data are available for batch number 309:

The required selling price per unit (to two decimal places) is:

  1. $28.60

Answer(s): A



Within a relevant range of output, the variable cost per unit of output will:

  1. Increase as output increases
  2. Reduce as output increases
  3. Remain constant as output increases
  4. Be impossible to tell without further information

Answer(s): C



In investment appraisal, the internal rate of return is

  1. the target rate of return for all investment proposals
  2. the rate at which a project's cash inflows is equal to its cash outflows
  3. the rate at which the present value of a project's cash inflows is zero
  4. the rate at which the present value of a project's cash inflows is equal to the present value of its cash outflows

Answer(s): D



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