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CIMA Fundamentals of management accounting Sample Questions:
1. Within a relevant range of output, the variable cost per unit of output will:
A) Remain constant as output increases
B) Be impossible to tell without further information
C) Increase as output increases
D) Reduce as output increases
2. A project is about to be launched. Two of the three possible outcomes and their associated probabilities are as follows:
The remaining possible outcome is a $70,000 gain.
What is the correct calculation of the expected value of the project?
A) ($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) + ($25,000 x 0.2)
B) ($30,000 + $70,000 - $25,000) / 3
C) ($30,000 + $70,000 - $25,000) x (0.7 + (1.0 - (0.2 + 0.7)) + 0.2)
D) ($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) - ($25,000 x 0.2)
3. A company operates a full cost system of pricing. Production overheads are absorbed using a pre-determined absorption rate of £3.50 per machine hour. The direct production cost of product A is £15 per unit and it utilises 6 machine hours per unit. The mark-up for non-production costs is 10% of total production cost. The company applies a 25% mark-up on total cost for all products.
The required selling price for Product A, to two decimal places, is:
4. Refer to the exhibit.
The following standard cost information relates to the production department of BE Ltd.
The actual data for the month of March was as follows:
What is the direct labour efficiency variance (to the nearest whole number)?
A) £6,406 adverse
B) £6,250 adverse
C) £6,250 favourable
D) £6,406 favourable
5. In an integrated cost and financial accounting system, the accounting entries for charging gross direct wages to production would be:
A) Debit: Wages control accountCredit: Bank account
B) Debit: Work in progress control accountCredit: Production overhead control account
C) Debit: Work in progress control accountCredit: Wages control account
D) Debit: Production overhead control accountCredit: Wages control account
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: Only visible for members | Question # 4 Answer: C | Question # 5 Answer: C |
By Yvonne
