CIMA Fundamentals of management accounting Sample Questions:
1. Refer to the Exhibit.
PD manufactures a product in a process operation. Normal loss is 5% of input and occurs at the end of the process. The following data is available for the month of August:
Scrapped units have no value.
There was no opening or closing work in progress for August.
What is the value of the abnormal gain in August?
A) Nil
B) $1,816
C) $1,880
D) $893
2. Which THREE of the following are included in the Global Management Accounting Principles? (Choose three.)
A) Professional behaviour
B) Influence
C) Value
D) Integrity
E) Relevance
F) Accountability
3. The budget and actual cost statements for the production department for the latest period were as follows.
Notes.
The 10% increase in production was required to meet unexpected additional sales demand.
The production manager is responsible for negotiating the price of materials with suppliers.
The normal working time is 900 hours per period. Any overtime worked above these 900 hours is paid at a premium of 50%.
In preparing the flexible budget for the latest period, which TWO of the following statements are correct?
(Choose two.)
A) The basic pay hours should not be flexed; they should remain at 1,000 hours.
B) The fixed costs should be flexed to $40,000 + 10% = $44,000.
C) The material price should be flexed to the actual figure of $3.10 per kg.
D) The material quantity should be flexed to 60,000 + 10% = 66,000 kg.
E) The overtime hours should be flexed to (1,000 + 10%) - 900 = 200 hours.
4. 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
5. Refer to the exhibit.
A company manufactures a single product, and relevant data is as follows:
Note. Overheads are assumed to be related to direct labor hours.
The actual results for the period were as follows:
What is the variable overhead efficiency variance?
A) £7,500 favorable
B) £6,500 favorable
C) £6,500 adverse
D) £7,500 adverse
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B,C,E | Question # 3 Answer: C,E | Question # 4 Answer: B | Question # 5 Answer: D |
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