CIMA CIMAPRA17-BA2-1 Exam Practice Test Instant Access

Question 1

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$6,220 adverse.

B$9,267 adverse.

C$16,000 adverse.

D$5,666 adverse.

Answer : D

Question 2

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

ARisk exists when we do not know all of the possible outcomes.

BRisk exists when we know all of the possible outcomes but not their probabilities.

CUncertainty exists when we know all of the possible outcomes but not their probabilities.

DUncertainty exists when we know all of the possible outcomes and their probabilities.

Answer : C

Question 3

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) / 3

B($30,000 + $70,000 - $25,000) x (0.7 + (1.0 - (0.2 + 0.7)) + 0.2)

C($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) + ($25,000 x 0.2)

D($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) - ($25,000 x 0.2)

Answer : A

Question 4

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

The budget variance for prime cost is:

A$3,260 adverse

B$18,580 adverse

C$3,340 adverse

D$3,260 favourable

Answer : B

Question 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?

A$54.00

B$50.77

C$47.00

D$44.55

Answer : D

Question 6

Which TWO of the following are characteristics of Management Accounts? (Choose two.)

AGoverned by rules and regulations

BProvide information to managers

CProvide information needed by shareholders

DInternally focused

EStatutory requirement

Answer : B, E

Question 7

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?

A58,5%

B70,9%

C41,5%

D40,0%

Answer : A

CIMAPRA17-BA2-1 BA2 - Fundamentals of Management Accounting Exam Practice Test