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 10, 2026     Q & A: 60 Questions and Answers

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

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

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

                                          Question #1

                                          A project is about to be launched. Two of the three possible outcomes and their associated probabilities are as follows:

                                          The remaining possible outcome is a $70,000 gain.
                                          What is the correct calculation of the expected value of the project?

                                          • A. ($30,000 + $70,000 - $25,000) x (0.7 + (1.0 - (0.2 + 0.7)) + 0.2)
                                          • B. ($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) - ($25,000 x 0.2)
                                          • C. ($30,000 + $70,000 - $25,000) / 3
                                          • D. ($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) + ($25,000 x 0.2)
                                          Answer: C
                                          Question #2

                                          A company produces a single product for which the following cost data are available.

                                          Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs.
                                          What is the marginal cost per unit?

                                          • A. $8
                                          • B. $9
                                          • C. $6
                                          • D. $7
                                          Answer: D
                                          Question #3

                                          The concept of the time value of money:

                                          • A. recognises the fact that earlier cash flows are worth more because they can be reinvested.
                                          • B. determines the higher interest rates that must be paid on longer term loans.
                                          • C. is used for making short term decisions.
                                          • D. recognises the fact that a cash flow received today will always be worth more than a larger cash flow received in the future.
                                          Answer: D

                                          Explanation: Only visible for Dumps4PDF members. You can sign-up / login (it's free).

                                          Question #4

                                          The following is an extract from a budgetary control report for the latest period:

                                          The budget variance for prime cost is:

                                          • A. $18,580 adverse
                                          • B. $3,260 favourable
                                          • C. $3,260 adverse
                                          • D. $3,340 adverse
                                          Answer: A
                                          Question #5

                                          Which of the following would NOT require taking into account the time value of money?

                                          • A. Taking a long-term investment decision on the basis of the project's internal rate of return (IRR).
                                          • B. Calculating the present value of a five-year annuity.
                                          • C. Deciding to make a long-term investment in a project on the basis of its payback period.
                                          • D. Selecting an investment project on the basis that it has a positive net present value (NPV).
                                          Answer: B

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