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CIMA Fundamentals of management accounting Sample Questions:

1. Feedforward control systems differ from feedback systems in that they _____________________.

A) Acknowledge adverse variances will occur and does nothing to prevent them.
B) Predict issues before they arise and attempt to prevent them.
C) Analyse the adverse variance before implementing a solution.

2. Place the following budgets in the order that they would be prepared. Assume that sales volume is the principal budget factor:
(a) Production
(b) Materials usage
(c) Sales
(d) Materials purchases

A) (a), (c), (b), (d)
B) (a), (c), (d), (b)
C) (c), (a), (b), (d)
D) (c), (a), (d), (b)

3. Refer to the exhibit.

The standard labour cost per unit of product 'B' is $24 (6 hours @ $4 per hour).
During period 5 the following details were recorded:
The output during period 5 was

4. The following data are available for a delivery company.
The table shows the number of tonnes delivered (x) and the associated distribution cist (y) in recent periods.

Further analysis of this data has determined the following:
xy = 36,427x2 = 1,144
Using least squares regression analysis, calculate the variable cost per tonne delivered. Give your answer to the nearest cent.

5. Which of the following are not advantages of Absorption costing? (Select ALL that apply.)

A) The key benefit of absorption is that it helps management in making short term decisions.
B) The key benefit of absorption costing is that it cannot be manipulated by production changes.
C) The key benefit of absorption costing is that it recognises both fixed and variable overheads are necessary for production to occur.

Solutions: