CIMA BA2 - Fundamentals of Management Accounting CIMAPRA17-BA2-1 Dumps in PDF

Free CIMA CIMAPRA17-BA2-1 Real Questions (page: 11)

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 wants to make a 25% return on sales revenue for all products.

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

  1. £52.85

Answer(s): A



CORRECT TEXT

A product sells for £10 per unit and has an annual break-even volume of 50,000 units. The annual fixed costs are £100,000.

The variable cost per unit is:

Give your answer to 2 decimal places.

  1. £8.03

Answer(s): A



Refer to the exhibit.



The wages analysis for the welding department of a manufacturing company is given below:

What is the direct labor cost for the welding department?

  1. $40,550
  2. $36,890
  3. $30,250
  4. $38,490

Answer(s): B



Refer to the Exhibit.


A company operates an absorption costing system. The management accounts show that fixed production overheads were over-absorbed in the period.

Which FOUR combinations could possibly have resulted in this situation?

  1. Combination A
  2. Combination B
  3. Combination C
  4. Combination D
  5. Combination E
  6. Combination F
  7. Combination G
  8. Combination H

Answer(s): C,D,E,F



The principal budget factor can be defined as:

  1. The factor which has the highest value in the budget
  2. The factor which limits the activities of the organisation
  3. The factor which is most likely to result in an adverse variance
  4. The factor which is least likely to change in the future

Answer(s): B



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