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Exam Code: BA2
Exam Name: Fundamentals of management accounting
Updated: Aug 07, 2026
Q & A: 392 Questions and Answers
BA2 Free Demo download
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| Section | Weight | Objectives |
|---|---|---|
| Planning and Control | 30% | - Budgeting methods and techniques - Standard costing and variance analysis - Performance measurement and reporting - Budgeting concepts and preparation |
| Costing | 25% | - Cost classification and behaviour - Marginal and absorption costing - Cost estimation techniques - Overhead allocation, apportionment and absorption - Job, batch, process and service costing |
| Decision Making | 35% | - Pricing decisions - Relevant costing for short-term decisions - Investment appraisal techniques - Risk and uncertainty analysis - Cost-volume-profit analysis |
| The Context of Management Accounting | 10% | - Global Management Accounting Principles - Role of CIMA and professional ethics - Role and purpose of management accounting - Characteristics of useful financial information |
1. Refer to the exhibit.
Xey Ltd. has the following budgeted information for product T4 in July:
The actual results for July were as follows:
What is the total sales margin variance?
A) £35,000 favourable
B) £35,000 favourable
C) £36,000 adverse
D) £36,000 favourable
2. The managing director of a small expanding company has made a number of statements about CIMA's role in relation to its members and to worldwide organizations.
Which ONE of the following statements is NOT correct?
A) CIMA provides its members and students with ethical guidance
B) CIMA's continuing professional development scheme is applicable to all members
C) CIMA is a member of IFAC (International Federation of Accountants)
D) CIMA's members work primarily in the private sector
3. The standard variable cost of product A is $4 per unit and the standard selling price is $6.80 per unit.
During the latest period 1,200 units of product A were produced and sold, compared with a budget of 1,300 units.
The actual variable cost incurred was $4.90 per unit and the actual selling price was $6.50 per unit.
The sales volume contribution variance for the period was
A) $160 adverse
B) $680 adverse
C) $390 adverse
D) $280 adverse
4. Refer to the exhibit.
Budgeted data for the manufacture of Product X is given below:
Each unit of Product X requires 6 labor hours. It is expected that idle time will account for 5% of labor hours.
Products are quality checked and normal rejection rate is 10% of completed units.
The budgeted direct labor hours required for Product X is:
5. Prime cost is:
A) The material cost of the product
B) Total product cost minus overheads
C) The cost of operating a cost centre
D) All costs incurred in making a product
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: Only visible for members | Question # 5 Answer: B |
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