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CIMA CIMA Certification CIMAPRO17-BA2-X1-ENG

CIMAPRO17-BA2-X1-ENG

Exam Code: CIMAPRO17-BA2-X1-ENG

Exam Name: BA2 – Fundamentals of Management Accounting Question Tutorial

Updated: Aug 26, 2026

Q & A: 60 Questions and Answers

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

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

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

                                          Question 1

                                          Which of the following statements regarding variances is valid?

                                          A. Using higher quality material than standard could explain an adverse labour efficiency variance.
                                          B. Improved maintenance of production machinery could explain an adverse material usage variance.
                                          C. Poor supervision could explain a favourable labour rate variance.
                                          D. An adverse labour rate variance could explain a favourable labour efficiency variance.


                                          Question 2

                                          Data for the latest period for a company which makes and sells a single product are as follows:

                                          There were no budgeted or actual changes in inventories during the period.
                                          The variable overhead expenditure variance for the period was:

                                          A. $462 favourable.
                                          B. $462 adverse.
                                          C. $2,202 adverse.
                                          D. $2,202 favourable.


                                          Question 3

                                          Assume that a unit of output is the cost object. Which of the following statements is valid?

                                          A. The salaries of supervisors who oversee the manufacture of several different products are an example of a direct labour cost.
                                          B. Royalties paid on per unit basis are an example of an indirect expense.
                                          C. Rent paid for a factory in which several different products are produced is an example of an indirect expense.
                                          D. Materials consumed in the maintenance of machinery used to manufacture several different products are an example of a direct material cost.


                                          Question 4

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

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


                                          Question 5

                                          A company makes and sells a range of products. The standard details per unit for one of these products, product X, are as follows.

                                          To meet sales demand, the company must obtain 2,000 units of product X next month. There is sufficient labour capacity to produce 1,500 of these units in-house during normal time. However, any production above this level would require overtime working which would be paid at a premium of 50%.
                                          The company can buy as many units of product X as it wishes next month from an external supplier at a price of $120 per unit.
                                          What is the total financial benefit to the company of purchasing the appropriate number of units from the external supplier rather than producing them in-house?

                                          A. $20,000
                                          B. $5,000
                                          C. $27,500
                                          D. $30,000


                                          Solutions:

                                          Question 1
                                          Answer: D
                                          Question 2
                                          Answer: B
                                          Question 3
                                          Answer: A
                                          Question 4
                                          Answer: A,D,F
                                          Question 5
                                          Answer: B

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