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Updated: Sep 02, 2025
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CIMA BA2 – Fundamentals of Management Accounting Question Tutorial Sample Questions:
1. Which of the following statements regarding variances is valid?
A) Poor supervision could explain a favourable labour rate variance.
B) Using higher quality material than standard could explain an adverse labour efficiency variance.
C) Improved maintenance of production machinery could explain an adverse material usage variance.
D) An adverse labour rate variance could explain a favourable labour efficiency variance.
2. Which of the following statements relating to risk and uncertainty is correct?
A) Risk exists when we know all of the possible outcomes but not their probabilities.
B) Uncertainty exists when we know all of the possible outcomes but not their probabilities.
C) Uncertainty exists when we know all of the possible outcomes and their probabilities.
D) Risk exists when we do not know all of the possible outcomes.
3. An organisation's management report contains the following data:
Which division has the highest operating margin percentage?
A) Division C
B) Division A
C) Division B
D) Division D
4. Which of the following statements about batch costing is true?
A) Batch costing must use absorption costing.
B) Batch costing must use marginal costing.
C) The cost of a batch is found by multiplying the cost of one unit by the number of units in the batch.
D) The cost of a unit is found by dividing the cost of a batch by the number of units in the batch.
5. A company's management accountant wishes to calculate the present value of the cost of renting a delivery vehicle. There will be five annual rental payments of $5,000, the first of which is due immediately. The company's discount rate is 12%.
Which TWO of the following are valid ways to calculate the present value of the rental payments? (Choose two.)
A) $5,000 + $5,000/1.12 + $5,000/(1.12)2 + $5,000/(1.12)3 + $5,000/(1.12)4
B) $5,000 x 3.605
C) $5,000 + ($5,000 x 3.605)
D) $5,000 + ($5,000 x 3.037)
E) $5,000/1.12 + $5,000/(1.12)2 + $5,000/(1.12)3 + $5,000/(1.12)4+ $5,000/(1.12)5
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: B,C |
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