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CIMA CIMAPRO17-BA2-X1-ENG

CIMAPRO17-BA2-X1-ENG

Exam Code: CIMAPRO17-BA2-X1-ENG

Exam Name: BA2 – Fundamentals of Management Accounting Question Tutorial

Updated: Jul 19, 2026

Q & A: 60 Questions and Answers

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

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

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

                                          1. 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) 9,000
                                          B) 32,000
                                          C) 36,000
                                          D) 8,000


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

                                          A) complete and reported in a timely manner.
                                          B) complete and relevant.
                                          C) both financial and non-financial.
                                          D) trusted and from reliable sources.


                                          3. A management accountant has forecast the following cash inflows from four potential projects.

                                          All four projects require the same initial investment and will last for four years. They all result in a positive net present value but only one of the projects can be undertaken.
                                          Which project should be selected?

                                          A) Project D
                                          B) Project C
                                          C) Project B
                                          D) Project A


                                          4. 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) $45.00
                                          B) $55.00
                                          C) $46.20
                                          D) $37.80


                                          5. A company is considering investing $57,000 in a machine that will last for five years, after which time it will have no value. The machine will generate additional revenue of $190,000 each year. Annual running costs, including depreciation of $11,400 will amount to $168,400.
                                          Assuming that all cash flows occur evenly, the payback period of the investment in the machine is closest to:

                                          A) 1 year 7 months
                                          B) 1 year 9 months
                                          C) 2 years 6 months
                                          D) 2 years 8 months


                                          Solutions:

                                          Question # 1
                                          Answer: B
                                          Question # 2
                                          Answer: B
                                          Question # 3
                                          Answer: D
                                          Question # 4
                                          Answer: C
                                          Question # 5
                                          Answer: A

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