BA2 CIMA Fundamentals of management accounting Free Practice Exam Questions (2025 Updated)

Why is it important to have a professional body such as CIMA in management accounting?

AB Ltd. is currently preparing its material usage budget for product 'Pep' for the forthcoming year. There will be 10,000 units of product 'Pep' produced during the forthcoming year. Each unit of 'Pep' requires 5 kgs of material 'X'.

Opening inventory of material 'X' is estimated to be 15,000 kgs and the company wishes to increase this level of inventory to 17,500 kgs by the end of next year.

The material usage budget for the forthcoming year is

Which of these descriptions most accurately describes a cost centre?

Refer to the exhibit.

A company issued its production budget based on an anticipated output of 800 units. Actual output was 1,000 units. The details of the costs are shown below:

The total budget variance was:

Which ONE of the following is a characteristic of operational financial information?

Refer to the exhibit.

The budget for product Sentra for the month of August is given below:

Each unit of Sentra requires 4kg of raw materials.

The raw materials usage budget for the month of August is:

An increase in variable costs per unit, where selling price and fixed costs remain constant, will result in which of the following:

Refer to the exhibit.

A company manufactures and sells a single product which has the following cost and selling price structure:

The fixed overhead absorption rate was based on normal capacity of 1800 units per month.

The budgeted break-even point in sales units per month is units.

In process costing, the term equivalent units refers to :

Refer to the exhibit.

The following budget details are available for Superkite Limited which manufacture a single product:

The raw materials purchases budget is

An abnormal loss in a process occurs when:

Refer to the exhibit.

In this profit/volume graph, which distance indicates the contribution earned at level of activity L?

Distance a

Distance b

Distance c

Distance d

Refer to the exhibit.

Which of the following journal entries are required to record the wages payable?

The journal entries required to record the wages payable are:

A standard hour is:

Refer to the exhibit.

A project is forecast to generate the following cash flows.

Using three decimal places in all discount factors, the net present value (NPV) for the project at a cost of capital of 14.5% is (to the nearest $)

A new range of clothing is very unique and will not appeal everyone. You are aware that if you were to equally distribute all the units there is a chance that they would not all sell.

You decide that the best option would be to select specific stores in which to sell the items, making them rare and desirable. This way they will become highly sought after.

However, whilst this has the potential to be very profitable it also has the lowest probability.

By making this decision you are considered to be_______.

Refer to the exhibit.

The standard variable cost per unit of Product W is $26. The budgeted sales of Product W in April was 3,300 units. The company recorded the following variances for the month of April:

During April 3,600 units of Product W were actually sold.

The budgeted contribution for Product W in April was to the nearest $000:

Refer to the exhibit.

A company requires 2,000 units each of components X, Y and Z during the next period. All three components are made on the same machine which has a capacity of 26,000 hours for next period. No inventories are held.

Data for the three components are as follows:

In order to minimize cost, how many units of component X should be purchased from the external supplier?

Which one of the global principles of management accounting should be tailored to the knowledge of the decision maker?