CIMA BA2 – Fundamentals of Management Accounting Question Tutorial : CIMAPRO17-BA2-X1-ENG

  • Exam Code: CIMAPRO17-BA2-X1-ENG
  • Exam Name: BA2 – Fundamentals of Management Accounting Question Tutorial
  • Updated: Sep 25, 2026
  • Q & A: 60 Questions and Answers

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CIMA CIMAPRO17-BA2-X1-ENG Exam Syllabus Topics:

SectionObjectives
Topic 1: Decision Making Techniques- Short-term decision making
  • 1. Make or buy decisions
    • 2. Limiting factor analysis
      - Cost analysis for decisions
      • 1. Relevant costing principles
        • 2. Incremental cost analysis
          Topic 2: Costing Methods- Absorption costing
          • 1. Inventory valuation
            • 2. Over/under absorption of overheads
              - Marginal costing
              • 1. Contribution and break-even analysis
                • 2. Cost-volume-profit (CVP) relationships
                  Topic 3: Accounting for Materials, Labour and Overheads- Material control
                  • 1. Stock control systems
                    • 2. Inventory valuation methods
                      - Labour costing
                      • 1. Time-based remuneration
                        • 2. Labour efficiency and productivity
                          Topic 4: Introduction to Cost Accounting- Cost classification and behavior
                          • 1. Fixed, variable and semi-variable costs
                            • 2. Direct and indirect costs
                              - Cost units and cost centers
                              • 1. Overhead allocation basics
                                • 2. Absorption of overheads
                                  Topic 5: Budgeting and Forecasting- Budget preparation
                                  • 1. Master budgets
                                    • 2. Functional budgets
                                      - Budgetary control
                                      • 1. Performance monitoring
                                        • 2. Variance analysis basics

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

                                          Question #1

                                          A company which manufactures and sells one product has fixed costs of $80,000 per period. The selling price per unit of $25 generates a contribution/sales ratio of 40%.
                                          How many units would need to be sold in a period to earn a profit of $10,000?

                                          • A. 32,000
                                          • B. 36,000
                                          • C. 8,000
                                          • D. 9,000
                                          Reveal Solution  Discussion  0

                                          Correct Answer: A  🗳️

                                          Question #2

                                          The year-to-date results at the end of month 9 included sales revenue of $3,600,000 and variable costs of
                                          $2,100,000.
                                          During month 10, sales revenue was $450,000 and variable costs were $270,000.
                                          What year-to-date contribution to sales ratio (C/S ratio) would be reported at the end of month 10?

                                          • A. 40,0%
                                          • B. 58,5%
                                          • C. 70,9%
                                          • D. 41,5%
                                          Reveal Solution  Discussion  0

                                          Correct Answer: B  🗳️

                                          Question #3

                                          A company operates an integrated standard cost accounting system. The standard price of raw material A is
                                          $20 per litre. At the start of period 1, the inventory of 500 litres of raw material A was valued at $20 per litre.
                                          During period 1, 100 litres of raw material A were purchased at an actual price of $21 per litre. During period 2,
                                          550 litres of raw material A were issued to Job 789.
                                          In respect of the above events, which TWO of the following statements are correct? (Choose two.)

                                          • A. The raw material inventory at the end of period 2 should be valued at $20 per litre.
                                          • B. An adverse material price variance should be recorded in the statement of profit or loss for period 1.
                                          • C. The raw material inventory at the end of period 1 should include 100 litres valued at $21 per litre.
                                          • D. The first 500 litres of raw material A issued should be debited to the Job 789 account at $20 per litre, and the remaining 50 litres at $21 per litre.
                                          • E. An adverse material price variance should be recorded in the statement of profit or loss for period 2.
                                          Reveal Solution  Discussion  0

                                          Correct Answer: D,E  🗳️

                                          Question #4

                                          Which THREE of the following are parts of the master budget? (Choose three.)

                                          • A. Budgeted statement of financial position.
                                          • B. Cash flow budget.
                                          • C. Administration overhead budget.
                                          • D. Sales budget.
                                          • E. Budgeted statement of profit or loss.
                                          • F. Finished goods inventory budget.
                                          Reveal Solution  Discussion  0

                                          Correct Answer: A,B,E  🗳️

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                                          Question #5

                                          Which of the following is a valid definition of a cash budget?

                                          • A. A detailed budget of estimated cash inflows and outflows incorporating both revenue and capital items.
                                          • B. A detailed budget of estimated cash inflows and outflows incorporating revenue items only.
                                          • C. A detailed budget of estimated cash outflows only, incorporating both depreciation and capital expenditure.
                                          • D. A detailed budget of estimated cash inflows only, incorporating receipts from cash sales as well as from credit customers.
                                          Reveal Solution  Discussion  0

                                          Correct Answer: B  🗳️

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