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

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

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

2. The forecast costs per unit for a new product are as follows:

The company uses marginal cost plus pricing and all products are required to achieve a 40% margin.
What would be the selling price per unit?

A) $55.00
B) $37.80
C) $45.00
D) $46.20

3. Which of the following is NOT a valid purpose of budgeting?

A) To authorise managers to incur expenditure.
B) To comply with financial reporting requirements.
C) To coordinate the different activities of an organisation.
D) To communicate targets to managers.

4. Which type of budget would be the most suitable for a cash budget?

A) Incremental budget
B) Fixed budget
C) Flexible budget
D) Rolling budget

5. According to CIMA's Code of Ethics, CIMA members should not allow bias, conflict of interest of the influence of other people to override their professional judgement.
This is an example of:

A) objectivity.
B) professional behaviour.
C) professional competence and due care.
D) integrity.

Solutions: