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CIMA Fundamentals of management accounting Sample Questions:

1. Which of the following cannot be used to split costs into fixed and variable elements?

A) Absorption costing
B) High-low method
C) Scattergraph
D) Line of best fit

2. Refer to the exhibit.

The following budgetary information is available for a manufacturing company:
A particular cost unit takes 4 machine hours in the machining department and 3 labour hours in each of the assembly and finishing departments.
The overhead cost absorbed per unit is:
Give your answer to 2 decimal places.

3. Which of the following are NOT behavioural aspects of budgetary controls? (Select ALL that apply.)

A) Irrational spending
B) Motivation
C) Short term focus
D) Competitiveness
E) Long term focus
F) Budget negotiation

4. Refer to the exhibit.

The management accountant has completed the initial allocation and apportionment of overheads as follows.
The service department costs are now to be reapportioned to the other departments as follows, taking account of reciprocal servicing.

After the service department costs have been reapportioned, the total overhead cost of Department A, to the nearest $, will be:

5. A company wishes to compare the variability of its monthly sales revenue in country A with that of country B.
The two countries use different currencies.
The monthly sales revenue for the last 48 months in country A (which is measured in $) has been analysed as follows.

What is the coefficient of variation of this data?
Give your answer as a percentage to one decimal place.

Solutions: