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CIMA Fundamentals of management accounting Sample Questions:

1. The wages of a machine operator who is paid by the hour would be described as A.

A) Variable cost
B) Semi-variable cost
C) Stepped fixed cost
D) Fixed cost

2. Refer to the exhibit.

ZAP publishes a monthly magazine aimed at the teenage market. It has drawn up a budget for next year as follows:
The magazine is currently sold at $2.00 per copy.
The margin of safety is

3. A manufacturing company has four production departments. Overheads have been apportioned between them as follows:

It takes each department 4 hours, 4 hours, 2 hours and 3 hours respectively to produce the company's only product. The company recovers costs on the basis of labour hours. They plan to produce 6,000 units What will the overhead absorption rate per unit be in £'s?
Select the correct answer from the choices below

A) £8.00
B) £7.90
C) £7JO
D) £7.50

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

A) To increase the employability of accountants
B) Regulates the amount accountants in circulation
C) To punish those who breach standards
D) Ensures certain standards are set and maintained
E) Helps make sure certain standards are set and maintained

5. Refer to the exhibit.

T operates a process costing system. Data is available for Process A for the month of July.
Inputs for the month:
Normal losses are 15% of input and can be sold for $6 per kg. Actual output was 2,600 kg. There is no opening or closing work in progress for the period.
What is the value of the output from the process in the month?

A) $46,538
B) $43,784
C) $45,120
D) $49,291

Solutions: