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

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

2. Which of the following would NOT be an appropriate performance measure for a profit centre manager?

A) Sales price variance
B) Return on capital employed
C) Gross margin
D) Contribution per unit

3. 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 sales volume contribution variance for the period was:

A) $5,666 adverse.
B) $16,000 adverse.
C) $9,267 adverse.
D) $6,220 adverse.

4. FILL BLANK
A company absorbs production overhead using a direct labour hour rate. Data for the latest period are as follows:

What is the overhead absorption rate per direct labour hour? Give your answer to one decimal place.

5. A new product requires an investment of $200,000 in machinery and working capital. The total sales volume over the product's life will be 5,000 units. The forecast costs per unit throughout the product's life are as follows:

The product is required to earn a return on investment of 35%.
What unit selling price needs to be achieved?