2021 Valid BA2 Real Exam Questions (Updated) 100% Dumps & Practice Exam
[UPDATED 2021] CIMA BA2 Questions Prepare with Free Demo of PDF
NEW QUESTION 191
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. 1.494 units
- B. 1.890 units
- C. 1.596 units
- D. 1.724 units
Answer: A
NEW QUESTION 192
A company budgeted £100,000 for labour.
However, feedback indicates that due to the need for overtime, the actual figure is more likely to be £120,000.
What type of feedback is this an example of?
Select the correct answer from the choices below:
- A. Positive feedback
- B. internal feedback
- C. ExternaI feedback
- D. Substantive feedback
- E. Negative feedback
Answer: E
NEW QUESTION 193
Which of the following is a valid definition of a cash budget?
- A. A detailed budget of estimated cash inflows and outflows incorporating revenue items only.
- B. A detailed budget of estimated cash outflows only, incorporating both depreciation and capital expenditure.
- C. A detailed budget of estimated cash inflows only, incorporating receipts from cash sales as well as from credit customers.
- D. A detailed budget of estimated cash inflows and outflows incorporating both revenue and capital items.
Answer: A
NEW QUESTION 194
Refer to the exhibit.
A company uses a job costing system and recovers overheads on a direct labour cost basis.
Budgeted direct labour hours for the period were 60,000 at a cost of £270,000. Budgeted production overheads were £648,000 and actual production overheads for the period were £621,000.
Job no. 247 has the following production costs:
The production overheads to be charged to Job no. 247 will be.
Answer:
Explanation:
£30550
NEW QUESTION 195
Overtime worked as a result of a rush order at the customers request should be classified as a:
- A. Direct expense
- B. Direct labour cost
- C. Production overhead cost
- D. Administration overhead cost
Answer: B
NEW QUESTION 196
The correlation coefficient is calculated using which of the following values;
- A. Spread
- B. Variance
- C. Range
- D. Standard deviation
- E. Mean
- F. Mode
Answer: D,E
NEW QUESTION 197
RJD Ltd is preparing the production cost budget for the forthcoming year and has found that there is a linear relationship between production volume and production costs.
They have found that a production volume of 1,600 units corresponds to production costs of £40000 and that a production volume of 3,200 units corresponds to production costs of £48,000.
What would be the production costs for a production volume of 4,000 units?
- A. £100,000
- B. £52000
- C. £60,000
- D. £120,000
Answer: B
NEW QUESTION 198
Refer to the exhibit.
A machine costing $47,000 will generate the following accounting profits:
The annual charge for depreciation is $9,000.
The payback period for the investment in the machine is closest to:
- A. 1 year 8 months
- B. 2 years 5 months
- C. 3 years 3 months
- D. 1 year 10 months
Answer: D
NEW QUESTION 199
In order for the information in a management accounting report to be authoritative its contents must be
- A. both financial and non-financial.
- B. trusted and from reliable sources
- C. complete and reported in a timely manner
- D. complete and relevant
Answer: D
NEW QUESTION 200
The records of a manufacturing company show the following relationship between total cost and output.
The budgeted output for Period 3 is 27,000 units. Assume that previous cost behaviour patterns will continue.
What is the total budgeted cost for Period 3?
Give your answer in the nearest whole number.
Answer:
Explanation:
431000
NEW QUESTION 201
Which one of the following statements about historical cost and economic value is correct?
- A. The concept of economic value applies only to non-current assets
- B. The economic value of an asset will depend on the alternative uses for the asset
- C. The historical cost of an asset will always be lower than its economic value
- D. The historical cost of an asset reduces as the remaining useful life of the asset reduces
Answer: B
NEW QUESTION 202
Refer to the exhibit.
The following data relates to two activity levels of a department. Overhead absorption is on the basis of machine hours.
The variable overhead rate per hour is £4.50. The amount of fixed overhead, to the nearest £000, is:
Answer:
Explanation:
£871
NEW QUESTION 203
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.
Answer:
Explanation:
£7.09
NEW QUESTION 204
Refer to the exhibit.
The following standard cost information relates to the production department of Brace Engineering Ltd.
The actual data for the month of March was as follows:
What is the direct labour rate variance (to the nearest whole number)?
- A. £2,656 adverse
- B. £2,500 favourable
- C. £2,500 adverse
- D. £2,656 favourable
Answer: C
NEW QUESTION 205
A company currently allows a discount of 10% to customers who pay at the time of purchase. If 20% of customers pay immediately, the extra sales needed in July to increase the cash receipts in that month by £9,000 are:
Answer:
Explanation:
£50001
NEW QUESTION 206
Which of these descriptions most accurately describes a cost centre?
- A. A cost centre is a location where all costs across the company are consolidated into one account.
- B. A cost centre is an office where costs for a specific activity are stored.
- C. A cost centre is a location where all costs relating to certain activities and functions are stored.
Answer: C
NEW QUESTION 207
The records of a manufacturing company show the following relationship between total cost and output
The budgeted output for Period 3 is 27.000 units. Assume that previous cost behaviour patterns will continue.
What is the total budgeted cost for Period 3? Give your answer to the nearest whole number.
Answer:
Explanation:
$431000
NEW QUESTION 208
A company's cash budgetary plans show that there will be surplus cash for three months of the forthcoming year.
Which THREE of the following would be appropriate management actions in this situation?
- A. Repay a long-term loan to reduce interest costs
- B. Offer a longer credit period to new customers to boost sales
- C. Purchase new non-current assets to increase efficiency
- D. Reduce the finished goods inventory to save storage costs
- E. Invest in a short-term deposit account
- F. Pay suppliers early to obtain prompt payment discounts
Answer: B,E,F
NEW QUESTION 209
Refer to the exhibit.
The following costs apply to batch 325, which consists of 10000 units of identical products:
The company charges selling and administration costs at a rate of 20% of production costs and wishes to achieve a profit margin of 20% of sales.
What is the required selling price per unit of product?
Answer:
Explanation:
Give your answer to 2 decimal places.
£14.81
NEW QUESTION 210
The following data relate to the latest period.
A statement is to be prepared that reconciles the difference between the flexible budget profit and the actual profit.
Which TWO of the following will appear on this statement? (Choose two.)
- A. An adverse labour efficiency variance.
- B. A favourable sales volume contribution variance.
- C. A favourable labour rate variance.
- D. An adverse sales price variance.
- E. An adverse material price variance.
Answer: A,D
NEW QUESTION 211
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