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CIMA CIMA Certification CIMAPRO17-BA2-X1-ENG

CIMAPRO17-BA2-X1-ENG

Exam Code: CIMAPRO17-BA2-X1-ENG

Exam Name: BA2 – Fundamentals of Management Accounting Question Tutorial

Updated: Sep 01, 2026

Q & A: 60 Questions and Answers

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

SectionObjectives
Budgeting and Forecasting- Budgetary control
  • 1. Variance analysis basics
    • 2. Performance monitoring
      - Budget preparation
      • 1. Functional budgets
        • 2. Master budgets
          Costing Methods- Marginal costing
          • 1. Contribution and break-even analysis
            • 2. Cost-volume-profit (CVP) relationships
              - Absorption costing
              • 1. Inventory valuation
                • 2. Over/under absorption of overheads
                  Decision Making Techniques- Short-term decision making
                  • 1. Limiting factor analysis
                    • 2. Make or buy decisions
                      - Cost analysis for decisions
                      • 1. Relevant costing principles
                        • 2. Incremental cost analysis
                          Introduction to Cost Accounting- Cost units and cost centers
                          • 1. Overhead allocation basics
                            • 2. Absorption of overheads
                              - Cost classification and behavior
                              • 1. Fixed, variable and semi-variable costs
                                • 2. Direct and indirect costs
                                  Accounting for Materials, Labour and Overheads- Labour costing
                                  • 1. Time-based remuneration
                                    • 2. Labour efficiency and productivity
                                      - Material control
                                      • 1. Inventory valuation methods
                                        • 2. Stock control systems

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

                                          Question 1

                                          The concept of the time value of money:

                                          A. recognises the fact that a cash flow received today will always be worth more than a larger cash flow received in the future.
                                          B. determines the higher interest rates that must be paid on longer term loans.
                                          C. recognises the fact that earlier cash flows are worth more because they can be reinvested.
                                          D. is used for making short term decisions.


                                          Question 2

                                          The forecast costs per unit for a new product are as follows:

                                          The company uses marginal cost plus pricing and all products are required to achieve a 40% margin.
                                          What would be the selling price per unit?

                                          A. $37.80
                                          B. $55.00
                                          C. $45.00
                                          D. $46.20


                                          Question 3

                                          Which of the following would NOT be an appropriate performance measure for a profit centre manager?

                                          A. Return on capital employed
                                          B. Gross margin
                                          C. Sales price variance
                                          D. Contribution per unit


                                          Question 4

                                          A company produces a single product for which the following cost data are available.

                                          Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs.
                                          What is the marginal cost per unit?

                                          A. $6
                                          B. $8
                                          C. $9
                                          D. $7


                                          Question 5

                                          Which THREE of the following are parts of the master budget? (Choose three.)

                                          A. Budgeted statement of financial position.
                                          B. Sales budget.
                                          C. Cash flow budget.
                                          D. Administration overhead budget.
                                          E. Budgeted statement of profit or loss.
                                          F. Finished goods inventory budget.


                                          Solutions:

                                          Question 1
                                          Answer: A
                                          Question 2
                                          Answer: D
                                          Question 3
                                          Answer: D
                                          Question 4
                                          Answer: D
                                          Question 5
                                          Answer: A,C,E

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