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

1. Which of the following statements relating to risk and uncertainty is correct?

A) Uncertainty exists when we know all of the possible outcomes but not their probabilities.
B) Risk exists when we do not know all of the possible outcomes.
C) Risk exists when we know all of the possible outcomes but not their probabilities.
D) Uncertainty exists when we know all of the possible outcomes and their probabilities.

2. According to CIMA's Code of Ethics, CIMA members should not allow bias, conflict of interest of the influence of other people to override their professional judgement.
This is an example of:

A) integrity.
B) objectivity.
C) professional behaviour.
D) professional competence and due care.

3. A sales manager has analysed a sample of 350 sales transactions from the latest period. The manager wishes to investigate:
how many customers made their purchase online using the internet and how many purchased by telephone.
how many were new customers and how many were placing repeat orders.
The following table shows the results of the analysis.

If the pattern of sales occurs next period, the probability of a particular sale being a repeat order placed online is closest to:

A) 0.35
B) 0.16
C) 0.11
D) 0.40

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

5. A company that uses standard costing wishes to reconcile the difference between the profit for a period calculated using absorption costing with that calculated using marginal costing.
Which TWO of the following will NOT help with this reconciliation? (Choose two.)

A) The fixed production overhead absorption rate.
B) The actual fixed production overheads.
C) The under or over absorbed fixed production overheads.
D) The opening inventory.
E) The closing inventory.

Solutions: