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

SectionObjectives
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
          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
                  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
                                  Decision Making Techniques- Short-term decision making
                                  • 1. Make or buy decisions
                                    • 2. Limiting factor analysis
                                      - Cost analysis for decisions
                                      • 1. Incremental cost analysis
                                        • 2. Relevant costing principles

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

                                          1. A company is considering investing $57,000 in a machine that will last for five years, after which time it will have no value. The machine will generate additional revenue of $190,000 each year. Annual running costs, including depreciation of $11,400 will amount to $168,400.
                                          Assuming that all cash flows occur evenly, the payback period of the investment in the machine is closest to:

                                          A) 1 year 7 months
                                          B) 2 years 8 months
                                          C) 2 years 6 months
                                          D) 1 year 9 months


                                          2. An organisation produces and sells a single product. The organisation's management accountant has reported the following information for the most recent period.

                                          Which TWO of the following statements are valid? (Choose two.)

                                          A) If the sales volume changed to 220,000 units, the breakeven point would not change.
                                          B) If the contribution to sales ratio changed to 30%, the breakeven point would become higher.
                                          C) If the selling price changed to $22 per unit, the breakeven point would become lower.
                                          D) If the fixed cost changed to $445,000, the breakeven point would not change.
                                          E) If the variable cost changed to $16 per unit, the breakeven point would become lower.


                                          3. A company uses standard absorption costing. Budgeted and actual data for the latest period are as follows.

                                          What was the production overhead absorption rate per unit?

                                          A) $27
                                          B) $35
                                          C) $21
                                          D) $29


                                          4. A management accountant has forecast the following cash inflows from four potential projects.

                                          All four projects require the same initial investment and will last for four years. They all result in a positive net present value but only one of the projects can be undertaken.
                                          Which project should be selected?

                                          A) Project C
                                          B) Project B
                                          C) Project D
                                          D) Project A


                                          5. Which of the following is a relevant cost?

                                          A) An incremental cost
                                          B) A historical cost
                                          C) A sunk cost
                                          D) A committed cost


                                          Solutions:

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

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