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CIMA BA2 Exam Syllabus Topics:

CIMA Fundamentals of management accounting Sample Questions:

1. How does Beyond budgeting help to resolve the weaknesses of traditional budgeting? (Select ALL that apply.)

A) Managers are given more freedom and control over their business units under Beyond budgeting.
B) Managers are encouraged to designate responsibility to others to lessen their workload so they may concentrate on important tasks.
C) Managers are set goals and targets to achieve rather than abiding by strict budgets and variances.
D) Managers focus on keeping costs low in the short term to ensure maximised profits.
E) Managers have a much larger scope of business goals that, when achieved, will increase shareholder value.
F) Managers are given incentives to meet or undercut budgets.

2. Which of the following statements is correct?
i. sector bodies use budgetary planning and control systems
ii. costing cannot be used by public sector bodies because they have no measurable output iii. in public sector bodies tend to focus on cost management therefore they have no need for non-financial information

A) (i) only
B) (i) and (iii) only
C) (i) and (ii) only
D) (ii) and (iii) only

3. Refer to the Exhibit.

The following details have been extracted from the receivables collection records of SBC:
The amount budgeted to be received in September from credit sales is, to the nearest £000:

4. The accounting treatment for overheads over absorbed is to:

A) Decrease the cost per unit for the period
B) Debit the income statement for the period
C) Increase the cost per unit for the period
D) Credit the income statement for the period

5. Relevant costs for decision making are.

A) Future costs which will be affected by the decision
B) Past costs incurred
C) Unavoidable costs
D) Variable costs only

Solutions: