CIMA BA2 Cert Guide PDF 100% Cover Real Exam Questions
Pass BA2 Exam - Real Questions & Answers
NEW QUESTION 229
Which of the following is the LEAST appropriate basis on which to apportion the insurance costs of plant and machinery:
- A. Machine hours
- B. Net book value
- C. Original cost
- D. Replacement cost
Answer: A
NEW QUESTION 230
An organisation produces and sells a single product. The organisation's management accountant has reported the following information for the most recent period.
Which TWO of the following statements are valid? (Choose two.)
- A. If the contribution to sales ratio changed to 30%, the breakeven point would become higher.
- B. If the variable cost changed to $16 per unit, the breakeven point would become lower.
- C. If the selling price changed to $22 per unit, the breakeven point would become lower.
- D. If the sales volume changed to 220,000 units, the breakeven point would not change.
- E. If the fixed cost changed to $445,000, the breakeven point would not change.
Answer: A,D
NEW QUESTION 231
Refer to the exhibit.
A proposal to purchase a new packing machine contains the following estimates.
In addition it is estimated that a supervisor who is currently paid a salary of $30,000 will spend 5% of their time overseeing the operation of this machine.
The cost of capital is 16%.
The net present value (NPV) for the investment in the machine is closest to
- A. $53,550
- B. $50,181
- C. $51,627
- D. $10,876
Answer: A
NEW QUESTION 232
Refer to the exhibit.
The prime cost of product 'Z' is as follows:
Overheads are absorbed at £4.00 per labor hour in Department 1 and £6.00 per labor hour in Department 2.
The production cost of Product Z, to the nearest £, will be:
Give your answer to 2 decimal places.
Answer:
Explanation:
£123.00
NEW QUESTION 233
A company has produced its cash budget for the year and is concerned at the level of the cash deficit being shown. Which THREE of the following would enable the company to reduce its cash deficit in the short term?
- A. Increase the overdraft facility
- B. Reduce inventory level of finished goods
- C. Increase receivable levels to encourage sales
- D. Purchase new non-current assets to increase productivity levels
- E. Take longer to pay suppliers
- F. Lease rather than purchase new non-current assets
Answer: B,E,F
NEW QUESTION 234
Refer to the exhibit.
The budget for product Sentra for the month of August is given below:
Each unit of Sentra requires 4kg of raw materials.
The raw materials usage budget for the month of August is:
- A. 496,000 kg
- B. 516,000 kg
- C. 492,000 kg
- D. 504,000 kg
Answer: B
NEW QUESTION 235
Refer to the exhibit.
The budgeted contribution for last month was $53,600. The variances reported were as follows:
The actual contribution for last month was:
Answer:
Explanation:
$62750
NEW QUESTION 236
Refer to the exhibit.
The following budgetary information is available for a manufacturing company:
A particular cost unit takes 4 machine hours in the machining department and 3 labour hours in each of the assembly and finishing departments.
The overhead cost absorbed per unit is:
Give your answer to 2 decimal places.
Answer:
Explanation:
£18.37
NEW QUESTION 237
Refer to the Exhibit.
The following budgetary information is available for a department in a manufacturing company:
The production overhead absorption rate percentage, when the percentage on prime cost is used, is:
Answer:
Explanation:
200%
NEW QUESTION 238
Refer to the exhibit.
- A. £250 adverse
- B. £260 favourable
- C. £260 adverse
- D. £250 favourable
- E. Fabex Ltd. manufactures a household detergent called "Clear". The standard data for one of the chemicals used in production (chemical XTC) is as follows:
(a) 50 litres used per 100 litres of 'Clear' produced
(b) Budgeted monthly production is 1000 litres of 'Clear'.
The closing inventory of chemical XTC for November valued at standard price was as follows:
Actual results for the period during December were as follows:
(a) 500 litres of chemical XTC was purchased for £1300.
(b) 550 litres of chemical XTC was used.
(c) 900 litres of 'Clear' was produced.
It is company policy to extract the material price variance at the time of purchase.
What is the total direct material usage variance (to the nearest whole number)?
Answer: E
NEW QUESTION 239
Refer to the exhibit.
The budgetary control report for the latest period shows the following. Variances in brackets are adverse.
Which THREE of the following statements can definitely be inferred from this control report?
- A. The selling price variance is favourable
- B. The direct material price variance is favourable
- C. The direct labour rate variance is adverse
- D. The variable overhead efficiency variance is adverse
- E. The total expenditure variance is adverse
- F. The sales volume contribution variance is adverse
Answer: A,E,F
NEW QUESTION 240
A small airport's management accountant has prepared the following management report on the performance of its four retail outlets.
Which retail outlet has the highest contribution per square meter?
- A. Outlet A
- B. Outlet C
- C. Outlet D
- D. Outlet B
Answer: B
NEW QUESTION 241
A cash budget is an example of a:
- A. Flexible budget
- B. Fixed budget
- C. Rolling budget
- D. Variable budget
Answer: C
NEW QUESTION 242
A company uses an integrated counting system. The following data relative to the latest period.
At the end of the period, the entry in the production overhead control in respect of under or over absorbed overhead will be:
- A. $22,672 debit
- B. $2,208 debit.
- C. $22,672 credit
- D. $2,208 credit
Answer: A
NEW QUESTION 243
The managing director of a small expanding company has asked you to discuss the positioning of management accounting within his organization.
Which of the following would you suggest is an advantage of the management accountant taking on a business partnering role within the organization?
(i) It is easier for the management accountant to remain objective in decision making situations (ii) The management accountant is an integral part of the business (iii) It is easier to build strong relationships between the managers and the management accountant
- A. (ii) and (iii)
- B. (i) and (ii)
- C. (i), (ii) and (iii)
- D. (i) only
Answer: A
NEW QUESTION 244
Refer to the exhibit.
AM Ltd. makes and sells a single product for which the standard cost information is as follows:
Budgeted production for the period is 30,000 units.
The actual results for the period were as follows:
What is the variable overhead efficiency variance?
- A. £5,161 favorable
- B. £5,600 favorable
- C. £5,600 adverse
- D. £5,161 adverse
Answer: C
NEW QUESTION 245
Variable costs can best be described as:
- A. Uncontrollable costs
- B. Costs that are not affected by changes in the level of activity
- C. Costs that vary with a measure of activity
- D. Costs that fluctuate widely
Answer: C
NEW QUESTION 246
Which THREE of the following costs would normally be classified as semi-variable?
- A. Cost of renting a photocopier which is a fixed rental fee plus a charge per copy made
- B. Advertising costs
- C. Royalties paid per unit produced
- D. Wages of a waitress paid a fixed rate per hour
- E. Salary of a sales executive paid a basic salary and a bonus based on sales level
- F. Telephone costs
Answer: A,E,F
NEW QUESTION 247
The year-to-date results at the end of month 9 included sales revenue of $3,600,000 and variable costs of $2,100,000
During month 10, sales revenue was $450,000 and variable costs were $270,000.
What year-to-date contribution to sales ratio (C/S ratio) would be reported at the end of month 10?
- A. 41.5%
- B. 58.5%
- C. 70.9%
- D. 40.0%
Answer: A
NEW QUESTION 248
An abnormal loss in a process occurs when:
- A. Production levels are below budget
- B. Costs are increased as a result of defective materials
- C. Actual losses are less than the normal loss level
- D. Actual losses are greater than the normal loss level
Answer: D
NEW QUESTION 249
Place the following budgets in the order that they would be prepared. Assume that sales volume is the principal budget factor:
(a) Production
(b) Materials usage
(c) Sales
(d) Materials purchases
- A. (a), (c), (b), (d)
- B. (a), (c), (d), (b)
- C. (c), (a), (d), (b)
- D. (c), (a), (b), (d)
Answer: D
NEW QUESTION 250
Refer to the exhibit.
A company operates a process costing system. The following data relates to Process X for the month of September.
Normal loss is 5% of input and all losses occur at the end of the process.
The number of equivalent units, using an average cost basis of valuation, was:
Conversion:
Answer:
Explanation:
39200
NEW QUESTION 251
A company has three production departments X. Y and Z, and one service department The service department's overhead has been apportioned to the production departments in the ratio 32 5 As a result of this apportionment, S2,070 was given to Department Y.
What is the amount of service department overhead that would have been apportioned to Department Z? Give your answer to the nearest dollar.
Answer:
Explanation:
$5175
NEW QUESTION 252
Refer to the exhibit.
The following information relates to Job 123:
The selling price to the customer for Job 123 is:
Answer:
Explanation:
$27030
NEW QUESTION 253
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