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CIMA Fundamentals of management accounting Sample Questions:

1. Which THREE of the following cost items would normally be classified as fixed costs?

A) Depreciation of machinery
B) Factory manager's salary
C) Direct Labour
D) Royalties payable on goods produced
E) Rent of the factory
F) Direct materials

2. A company uses full cost pricing. The unit costs for product Z are given below.

What price per unit should be charged in order to achieve a profit margin of 20%?
Give your answer to the nearest cent.

3. The standard labour content of one unit of 'BFC' is $35 (7 hours paid at $5 per hour).
During period 2, 600 hours were worked at a cost of $3,300 to produce 90 units of 'BFC'.
What was the direct labour total variance for Period 2?

A) $150 Adverse
B) $300 Favourable
C) $150 Favourable
D) $300 Adverse

4. Refer to the exhibit.

Vertical axis = £; horizontal axis = level of activity
This graph is known as a:

A) Conventional break-even graph
B) Contribution break-even graph
C) Variable cost graph
D) Profit volume graph

5. CL produces a household detergent in a single process. Information for this process for last month is as follows:
(a) Materials input - 11,000 Litres at £2.00 per litre.
(b) Conversion costs - £23,000
(c) Output during the month - 8,000 litres.
(d) There were 2,000 units of closing work in progress which was complete as to materials and 35% complete as to conversion.
(e) Normal loss for the month was 5% of input and all losses have a scrap value of 50p per litre.
(f) There is no opening work in progress.
The value of finished output during the month (to the nearest £) was:

Solutions: