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

1. A management accountant has forecast the following cash inflows from four potential projects.

All four projects require the same initial investment and will last for four years. They all result in a positive net present value but only one of the projects can be undertaken.
Which project should be selected?

A) Project B
B) Project A
C) Project D
D) Project C

2. The International Federation of Accountants (IFAC) stated that it was important that "accountants in business" should understand what the drivers of stakeholder value are. Which of the following statements is valid?

A) Only an organisation's shareholders can be considered to be its stakeholders.
B) Stakeholders must be external to the organisation.
C) Only an organisation's shareholders and employees can be considered to be its stakeholders.
D) Anyone with an interest in an organisation can be considered to be one of its stakeholders.

3. FILL BLANK
A company wishes to compare the variability of its monthly sales revenue in country A with that of country B.
The two countries use different currencies.
The monthly sales revenue for the last 48 months in country A (which is measured in $) has been analysed as follows.

What is the coefficient of variation of this data?
Give your answer as a percentage to one decimal place.

4. In responsibility accounting, costs and revenues are grouped according to:

A) their behaviour.
B) the budget holder.
C) their function.
D) the service provided.

5. The following is an extract from a budgetary control report for the latest period:

The budget variance for prime cost is:

A) $18,580 adverse
B) $3,260 favourable
C) $3,340 adverse
D) $3,260 adverse

Solutions: