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CIMA BA2 – Fundamentals of Management Accounting Question Tutorial Sample Questions:

1. In order for the information in a management accounting report to be authoritative its contents must be:

A) trusted and from reliable sources.
B) both financial and non-financial.
C) complete and relevant.
D) complete and reported in a timely manner.

2. In a company that manufactures many different products on the same production line, which TWO of the following would NOT be classified as indirect production costs? (Choose two.)

A) Factory rent.
B) Commissions paid to the sales team.
C) Maintenance costs for the company's only production line.
D) Royalties paid to the designers of the products.
E) Salary paid to the factory manager.

3. Which of the following is a relevant cost?

A) A sunk cost
B) An incremental cost
C) A committed cost
D) A historical cost

4. A company uses an integrated accounting system. The following data relate to the latest period.

At the end of the period, the entry in the production overhead control account in respect of under or over absorbed overheads will be:

A) $22,672 debit.
B) $2,208 debit.
C) $22,672 credit.
D) $2,208 credit.

5. In responsibility accounting, costs and revenues are grouped according to:

A) their function.
B) their behaviour.
C) the budget holder.
D) the service provided.

Solutions:

Question # 1 Answer: C

Question # 2 Answer: A,E

Question # 3 Answer: B

Question # 4 Answer: A

Question # 5 Answer: B