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CIMA Fundamentals of management accounting Sample Questions:

1. Which ONE of the following would be classified as an internal environmental cost?

A) Health care costs
B) Waste disposal costs
C) Social welfare costs
D) Carbon emissions

2. Refer to the exhibit.

Storm Limited manufactures a single product, the cost and selling price of which are given below:
The breakeven point is:

3. Which of the following is a valid definition of a cash budget?

A) A detailed budget of estimated cash inflows and outflows incorporating both revenue and capital items.
B) A detailed budget of estimated cash inflows only, incorporating receipts from cash sales as well as from credit customers.
C) A detailed budget of estimated cash inflows and outflows incorporating revenue items only.
D) A detailed budget of estimated cash outflows only, incorporating both depreciation and capital expenditure.

4. Which one of the following is an advantage of placing the management accounting function within a centralized finance department?

A) The management accountant obtains better knowledge of specific parts of the business
B) Communications are improved between the managers and the management accountant
C) The management accounting function is an integral part of the business
D) Costs are reduced

5. Refer to the exhibit.

SS Ltd. manufactures four products which require the same type of material. The following fixed cost and profit/(loss) per unit is available:

In a period in which materials are in short supply, which of the following options is the rank order of production?

A) Option D
B) Option C
C) Option A
D) Option B

Solutions: