CIMA CIMAPRO17-BA2-X1-ENG Exam Questions : BA2 – Fundamentals of Management Accounting Question Tutorial

  • Exam Code: CIMAPRO17-BA2-X1-ENG
  • Exam Name: BA2 – Fundamentals of Management Accounting Question Tutorial
  • Updated: Oct 26, 2026
  • Q&As: 60 Questions and Answers

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CIMA CIMAPRO17-BA2-X1-ENG Exam Syllabus Topics:

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

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

                                          Question #1

                                          A company's policy is to hold closing inventory each month equal to 10% of the next month's budgeted sales volume. The budgeted sales volumes of product Q for months 1 and 2 are 1,660 units and 2,300 units respectively.
                                          The production budget for product Q for month 1 is:

                                          • A. 1,596 units
                                          • B. 1,890 units
                                          • C. 1,724 units
                                          • D. 1,494 units
                                          Reveal Solution  Discussion  0

                                          Correct Answer: D  🗳️

                                          Question #2

                                          A company which manufactures and sells one product has fixed costs of $80,000 per period. The selling price per unit of $25 generates a contribution/sales ratio of 40%.
                                          How many units would need to be sold in a period to earn a profit of $10,000?

                                          • A. 32,000
                                          • B. 9,000
                                          • C. 8,000
                                          • D. 36,000
                                          Reveal Solution  Discussion  0

                                          Correct Answer: A  🗳️

                                          Question #3

                                          A company makes and sells a range of products. The standard details per unit for one of these products, product X, are as follows.

                                          To meet sales demand, the company must obtain 2,000 units of product X next month. There is sufficient labour capacity to produce 1,500 of these units in-house during normal time. However, any production above this level would require overtime working which would be paid at a premium of 50%.
                                          The company can buy as many units of product X as it wishes next month from an external supplier at a price of $120 per unit.
                                          What is the total financial benefit to the company of purchasing the appropriate number of units from the external supplier rather than producing them in-house?

                                          • A. $30,000
                                          • B. $20,000
                                          • C. $5,000
                                          • D. $27,500
                                          Reveal Solution  Discussion  0

                                          Correct Answer: C  🗳️

                                          Question #4

                                          Which of the following is NOT a characteristic of useful operational level information?

                                          • A. Available immediately.
                                          • B. Focused on the decision to be made.
                                          • C. Governed by financial reporting standards.
                                          • D. Sufficiently accurate.
                                          Reveal Solution  Discussion  0

                                          Correct Answer: A  🗳️

                                          Question #5

                                          In order for the information in a management accounting report to be authoritative its contents must be:

                                          • A. trusted and from reliable sources.
                                          • B. complete and relevant.
                                          • C. complete and reported in a timely manner.
                                          • D. both financial and non-financial.
                                          Reveal Solution  Discussion  0

                                          Correct Answer: B  🗳️

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