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CIMA Fundamentals of management accounting Sample Questions:

1. Which of the following is NOT a valid purpose of budgeting?

A) To comply with financial reporting requirements.
B) To coordinate the different activities of an organisation.
C) To authorise managers to incur expenditure.
D) To communicate targets to managers.

2. Refer to the exhibit.

The wages analysis for the welding department of a manufacturing company is given below:
What is the direct labor cost for the welding department?

A) $30,250
B) $36,890
C) $40,550
D) $38,490

3. Data for the latest period for a company which makes and sells a single product are as follows:

There were no budgeted or actual changes in inventories during the period.
The sales volume contribution variance for the period was:

A) $16,000 adverse.
B) $5,666 adverse.
C) $9,267 adverse.
D) $6,220 adverse.

4. Overhead absorption is best described as:

A) The charging of overheads to cost units produced
B) The identification of overhead cost variances
C) The process of sharing costs amongst two or more cost centres
D) The identification of costs specifically attributable to a particular cost centre

5. During the completion of Job A, £1,000 worth of material was transferred to it from Job B which had finished ahead of schedule.
How will this be inputted into the Job B account?

A) Job B, £1,000 debit
B) Job A, £1,000 credit
C) Job A, £1,000 debit
D) Job B, £1,000 credit

Solutions: