CIMA CIMAPRO17-BA2-X1-ENG Q&A - in .pdf

  • CIMAPRO17-BA2-X1-ENG pdf
  • Exam Code: CIMAPRO17-BA2-X1-ENG
  • Exam Name: BA2 – Fundamentals of Management Accounting Question Tutorial
  • Updated: Oct 04, 2026
  • Q & A: 60 Questions and Answers
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  • Exam Code: CIMAPRO17-BA2-X1-ENG
  • Exam Name: BA2 – Fundamentals of Management Accounting Question Tutorial
  • Updated: Oct 04, 2026
  • Q & A: 60 Questions and Answers
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CIMA CIMAPRO17-BA2-X1-ENG Exam Syllabus Topics:

SectionObjectives
Topic 1: Decision Making Techniques- Short-term decision making
  • 1. Limiting factor analysis
    • 2. Make or buy decisions
      - Cost analysis for decisions
      • 1. Incremental cost analysis
        • 2. Relevant costing principles
          Topic 2: Budgeting and Forecasting- Budget preparation
          • 1. Master budgets
            • 2. Functional budgets
              - Budgetary control
              • 1. Performance monitoring
                • 2. Variance analysis basics
                  Topic 3: Introduction to Cost Accounting- Cost classification and behavior
                  • 1. Fixed, variable and semi-variable costs
                    • 2. Direct and indirect costs
                      - Cost units and cost centers
                      • 1. Absorption of overheads
                        • 2. Overhead allocation basics
                          Topic 4: Accounting for Materials, Labour and Overheads- Material control
                          • 1. Inventory valuation methods
                            • 2. Stock control systems
                              - Labour costing
                              • 1. Time-based remuneration
                                • 2. Labour efficiency and productivity
                                  Topic 5: Costing Methods- Absorption costing
                                  • 1. Over/under absorption of overheads
                                    • 2. Inventory valuation
                                      - Marginal costing
                                      • 1. Cost-volume-profit (CVP) relationships
                                        • 2. Contribution and break-even analysis

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

                                          Question #1

                                          A new product requires an investment of $200,000 in machinery and working capital. The total sales volume over the product's life will be 5,000 units. The forecast costs per unit throughout the product's life are as follows:

                                          The product is required to earn a return on investment of 35%.
                                          What unit selling price needs to be achieved?

                                          • A. $54.00
                                          • B. $50.77
                                          • C. $47.00
                                          • D. $44.55
                                          Reveal Solution  Discussion  0

                                          Correct Answer: D  🗳️

                                          Question #2

                                          FILL BLANK
                                          The records of a manufacturing company show the following relationship between total cost and output.

                                          The budgeted output for Period 3 is 27,000 units. Assume that previous cost behaviour patterns will continue.
                                          What is the total budgeted cost for Period 3?
                                          Give your answer in the nearest whole number.

                                          Reveal Solution  Discussion  0

                                          Correct Answer:

                                          431000

                                          Question #3

                                          Which THREE of the following are parts of the master budget? (Choose three.)

                                          • A. Finished goods inventory budget.
                                          • B. Cash flow budget.
                                          • C. Budgeted statement of financial position.
                                          • D. Budgeted statement of profit or loss.
                                          • E. Sales budget.
                                          • F. Administration overhead budget.
                                          Reveal Solution  Discussion  0

                                          Correct Answer: B,C,D  🗳️

                                          Explanation: Only visible for PracticeDump members. You can sign-up / login (it's free).

                                          Question #4

                                          In a company that manufactures many different products on the same production line, which TWO of the following would NOT be classified as indirect production costs? (Choose two.)

                                          • A. Commissions paid to the sales team.
                                          • B. Salary paid to the factory manager.
                                          • C. Maintenance costs for the company's only production line.
                                          • D. Factory rent.
                                          • E. Royalties paid to the designers of the products.
                                          Reveal Solution  Discussion  0

                                          Correct Answer: B,D  🗳️

                                          Question #5

                                          A company is considering investing $57,000 in a machine that will last for five years, after which time it will have no value. The machine will generate additional revenue of $190,000 each year. Annual running costs, including depreciation of $11,400 will amount to $168,400.
                                          Assuming that all cash flows occur evenly, the payback period of the investment in the machine is closest to:

                                          • A. 2 years 8 months
                                          • B. 2 years 6 months
                                          • C. 1 year 7 months
                                          • D. 1 year 9 months
                                          Reveal Solution  Discussion  0

                                          Correct Answer: C  🗳️

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