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

CIMAPRO17-BA2-X1-ENG real exams

Exam Code: CIMAPRO17-BA2-X1-ENG

Exam Name: BA2 – Fundamentals of Management Accounting Question Tutorial

Updated: Sep 15, 2026

Q & A: 60 Questions and Answers

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

SectionWeightObjectives
Costing25%- Cost Identification and Classification
  • 1. Direct and indirect costs
  • 2. Variable, semi-variable, stepped and fixed costs
  • 3. Relevant and irrelevant costs
  • 4. Cost behaviour analysis
- Absorption and Marginal Costing
  • 1. Profit reconciliation
  • 2. Pricing decisions
  • 3. Marginal costing
  • 4. Full costing
  • 5. Overhead allocation and apportionment
Planning and Control30%- Performance Measurement and Control
  • 1. Performance reporting
  • 2. Standard costing
  • 3. Variance analysis
- Budgeting
  • 1. Functional budgets
  • 2. Cash budgets
  • 3. Preparation of budgets
The Context of Management Accounting10%- Role of CIMA
  • 1. Development of management accounting practice
  • 2. Professional body for management accountants
- Purpose of Management Accounting
  • 1. Need for management accounting
  • 2. Role of the management accountant
  • 3. Relationship between management accountants and managers
  • 4. Characteristics of financial information
Decision Making35%- Investment and Strategic Decisions
  • 1. Use of accounting information for decision making
  • 2. Profit maximisation
  • 3. Investment appraisal techniques
- Short-Term Decision Making
  • 1. Cost-volume-profit analysis
  • 2. Break-even analysis
  • 3. Limiting factor analysis
  • 4. Make or buy decisions

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

Question #1

A project is about to be launched. Two of the three possible outcomes and their associated probabilities are as follows:

The remaining possible outcome is a $70,000 gain.
What is the correct calculation of the expected value of the project?

  • A. ($30,000 + $70,000 - $25,000) x (0.7 + (1.0 - (0.2 + 0.7)) + 0.2)
  • B. ($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) + ($25,000 x 0.2)
  • C. ($30,000 + $70,000 - $25,000) / 3
  • D. ($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) - ($25,000 x 0.2)
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #2

Which of the following would NOT require taking into account the time value of money?

  • A. Taking a long-term investment decision on the basis of the project's internal rate of return (IRR).
  • B. Selecting an investment project on the basis that it has a positive net present value (NPV).
  • C. Calculating the present value of a five-year annuity.
  • D. Deciding to make a long-term investment in a project on the basis of its payback period.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #3

The budget and actual cost statements for the production department for the latest period were as follows.

Notes.
1. The 10% increase in production was required to meet unexpected additional sales demand.
2. The production manager is responsible for negotiating the price of materials with suppliers.
3. 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 material price should be flexed to the actual figure of $3.10 per kg.
  • B. The overtime hours should be flexed to (1,000 + 10%) - 900 = 200 hours.
  • C. The material quantity should be flexed to 60,000 + 10% = 66,000 kg.
  • D. The fixed costs should be flexed to $40,000 + 10% = $44,000.
  • E. The basic pay hours should not be flexed; they should remain at 1,000 hours.
Reveal Solution  Discussion  0

Correct Answer: A,B  🗳️

Question #4

Which of the following is a relevant cost?

  • A. An incremental cost
  • B. A committed cost
  • C. A historical cost
  • D. A sunk cost
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

Which THREE of the following are parts of the master budget? (Choose three.)

  • A. Finished goods inventory budget.
  • B. Administration overhead budget.
  • C. Sales budget.
  • D. Budgeted statement of financial position.
  • E. Cash flow budget.
  • F. Budgeted statement of profit or loss.
Reveal Solution  Discussion  0

Correct Answer: D,E,F  🗳️

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