CIMA BA2 Based on Real Exam Environment

Fundamentals of Management Accounting Questions and Answers

Question 25

The materials price variance will be adverse when:

The actual cost of the materials is more than the standard material cost for the output produced

The actual cost of the materials purchased is more than the standard cost of the materials purchased

The materials usage variance is favourable

The price of materials has fallen

Question 26

A company uses an integrated accounting system.

The accounting entries for the sale of goods on credit would bE.

Debit: Receivables control accountCredit: Sales account

Debit: Sales accountCredit: Finished Goods Control account

Debit: Receivables control accountCredit: Cost of sales account

Debit: Sales accountCredit: Receivables control account

Question 27

Each unit of product GM requires 4 labour hours to be produced. 25% of the units will be completed during overtime hours.

Sales of 24,000 units are planned and finished goods inventory is budgeted to rise by 2,000 units.

If the wage rate is £6 per hour and the overtime premium is 50%, what is the budgeted labour cost?

Question 28

Refer to the exhibit.

The following data are available for last period for the x-ray department of a local hospital:

The x-ray department cost per patient for last period was (to the nearest $0.01) is: