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  1. Home
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  3. BA2

CIMA BA2 Exam (page: 14)
CIMA Fundamentals of Management Accounting
Updated on: 09-Feb-2026

Viewing Page 14 of 80
BA2 PDF 392 Questions

Refer to the Exhibit.



Zepher Ltd. manufactures three products, which require the same type of machine. The following fixed cost and profit per unit is available:



In a period in which machine hours are in short supply, which of the following options is the rank order of production?

Answer is:

  1. Option A
  2. Option B
  3. Option C
  4. Option D

Answer(s): A



CORRECT TEXT

A company operates a full cost system of pricing. Production overheads are absorbed using a pre-determined absorption rate of £3.50 per machine hour. The direct production cost of product A is £15 per unit and it utilises 6 machine hours per unit. The mark-up for non-production costs is 10% of total production cost. The company applies a 25% mark-up on total cost for all products.

The required selling price for Product A, to two decimal places, is:

  1. £49.52

Answer(s): A



CORRECT TEXT

Refer to the Exhibit.



The following details have been extracted from the receivables collection records of SBC:

The amount budgeted to be received in September from credit sales is, to the nearest £000:

  1. £257000

Answer(s): A



Each finished carton of product P contains 15 litres of liquid L. During the production process there is an unavoidable loss of 20% of the liquid input. The standard price of liquid L is $2 per litre.

The standard ingredient cost for liquid L shown on the standard cost card for one carton of product P will be

  1. $18.75
  2. $30.00
  3. $36.00
  4. $37.50

Answer(s): D



The following costs are incurred by a company which owns a five star hotel. Which THREE of the items would normally be classified as variable costs?

  1. Advertising
  2. Food
  3. Depreciation on gym equipment
  4. Restaurant Manager's salary
  5. Beverages
  6. Outside laundry service

Answer(s): B,E,F



Viewing Page 14 of 80



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