CIMA Certificate BA2 Exam Questions and Answers PDF

Fundamentals of Management Accounting Questions and Answers

Question 53

Over absorption of overhead will always arise when:

actual overhead incurred is lower than budgeted overhead

actual overhead incurred is lower than absorbed overhead

absorbed overhead is lower than actual overhead incurred

absorbed overhead is higher than budgeted overhead

Question 54

Refer to the exhibit

Zeff Ltd has forecast that the relationship between total overheads and machine hours will be as follows:

If the budget is to be based on 4,000 machine hours, the fixed overhead absorption rate will be:

Give your answer to 2 decimal places.

Question 55

Refer to the exhibit.

A project is forecast to generate the following cash flows.

Using three decimal places in all discount factors, the net present value (NPV) for the project at a cost of capital of 14.5% is (to the nearest $)

Question 56

Which of the following would have an impact on the cash budget?

(a) Change in payables terms

(b) Change in the rate of depreciation

(d) Change of inventory holding policy

None of the above

(a), (b) and (c)

(a), (c) and (d)

All of the above