CIMA BA2 - Fundamentals of Management Accounting CIMAPRA17-BA2-1 Exam Questions in PDF

Free CIMA CIMAPRA17-BA2-1 Dumps Questions (page: 8)

Prime cost is:

  1. Total product cost minus overheads
  2. The material cost of the product
  3. The cost of operating a cost centre
  4. All costs incurred in making a product

Answer(s): A



CORRECT TEXT

Refer to the exhibit.



The following data relates to two activity levels of a department. Overhead absorption is on the basis of machine hours.

The variable overhead rate per hour is £4.50. The amount of fixed overhead, to the nearest £000, is:

  1. £871

Answer(s): A



CORRECT TEXT

Refer to the exhibit.



The following information is available for a production process:

The cost per unit of good output is:

Give your answer to 2 decimal places.

  1. £13.17

Answer(s): A



Fixed costs can best be described as:

  1. Costs which are difficult to budget accurately
  2. Costs which remain constant, within a relevant range, when activity levels change
  3. Costs which never change
  4. Costs which are uncontrollable

Answer(s): B



Refer to the exhibit.



Xell Ltd uses a standard costing system and therefore values all inventory at standard cost. During period 3 the price paid for material 'A' was £6 per kg less than the standard price.

The following information for material 'A' relates to period 3:

What was the material price variance for period 3?

  1. £6 Favourable
  2. £60 Favourable
  3. £1500 Favourable
  4. £1800 Favourable

Answer(s): D



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