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CIMA Fundamentals of management accounting Sample Questions:

1. There are four global principles for management accounting which are intended to support organisations in setting a standard and improving their management accounting systems.
Which one of the following helps management determine whether a certain decision will potentially generate, preserve, or destroy value within the business?

A) Trust
B) Information
C) Impact
D) Communication

2. Which of the following statements about CIMA's role in relation to its students is correct?
i. CIMA's professional conduct staff process complaints made against CIMA students ii. Students are not governed by CIMA's code of ethics until they become registered CIMA members iii. Students may consult CIMA about situations in their work place that appear to conflict with CIMA's code of ethics iv. Once students have passed all of the CIMA exams they may use the designatory letters ACMA

A) (i), (iii) and (iv)
B) (i), (ii) and (iv)
C) (iii) and (iv)
D) (i) and (iii)

3. Refer to the exhibit.

A company manufactures three components on the same machine, on which there is spare capacity. An external supplier has offered to supply all of the company's requirements of the components. Data for the components are as follows:
Which components should be purchased from the external supplier?

A) Components Y and Z
B) Components X and Z
C) Component X only
D) Components X, Y and Z

4. Refer to the exhibit.

A company budgeted to provide 700 units of service last period for a budgeted variable overhead cost of
$29,400. During the period a total of 790 units of service were provided and the variable overhead cost incurred was $29,660.
For effective control of variable overhead cost which two figures should be compared in the budgetary control statement?

A) Row C
B) Row A
C) Row B
D) Row D

5. An abnormal loss in a process occurs when:

A) Actual losses are less than the normal loss level
B) Costs are increased as a result of defective materials
C) Production levels are below budget
D) Actual losses are greater than the normal loss level

Solutions: