BA2 – Fundamentals of Management Accounting Question Tutorial (CIMAPRO17-BA2-X1-ENG) Free Practice Test

Question 1

A company is appraising two projects. Both projects are for five years. Details of the two projects are as follows.

Based on the above information, which of the following statements is correct?

A. The annuity factor for project A would be lower than the annuity factor for the project B.

B. An annuity could be used to calculate the net present value of the projects.

C. A perpetuity could be used to calculate the net present value of the projects.

D. The annuity factor for project A would double the annuity factor for project B.

Correct Answer: B

Question 2

Which of the following is a valid definition of a cash budget?

A. A detailed budget of estimated cash outflows only, incorporating both depreciation and capital expenditure.

B. A detailed budget of estimated cash inflows only, incorporating receipts from cash sales as well as from credit customers.

C. A detailed budget of estimated cash inflows and outflows incorporating revenue items only.

D. A detailed budget of estimated cash inflows and outflows incorporating both revenue and capital items.

Correct Answer: C

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Question 3

Every month for the last three years, a company has recorded the number of new customers for that month.
The data have been summarised and grouped as follows:

What is the arithmetic mean of the number of new customers per month?

A. 6.50

B. 6.22

C. 8.50

D. 6.38

Correct Answer: C

Question 4

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

Correct Answer: A

Question 5

FILL BLANK
The following data are available for a delivery company. The table shows the number of tonnes delivered (x) and the associated distribution cist (y) in recent periods.

Further analysis of this data has determined the following:
∑xy = 36,427 ∑x2 = 1,144
Using least squares regression analysis, calculate the variable cost per tonne delivered. Give your answer to the nearest cent.

Correct Answer:

-128.10

Question 6

Which TWO of the following are characteristics of Management Accounts? (Choose two.)

A. Statutory requirement

B. Provide information to managers

C. Governed by rules and regulations

D. Internally focused

E. Provide information needed by shareholders

Correct Answer: A,B

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CIMA BA2 – Fundamentals of Management Accounting Question Tutorial (CIMAPRO17-BA2-X1-ENG) Free Practice Test