CIMA BA2 – Fundamentals of Management Accounting Question Tutorial : CIMAPRO17-BA2-X1-ENG exam

CIMA CIMAPRO17-BA2-X1-ENG Actual PDF
  • Exam Code: CIMAPRO17-BA2-X1-ENG
  • Exam Name: BA2 – Fundamentals of Management Accounting Question Tutorial
  • Updated: Oct 04, 2026
  • Q & A: 60 Questions and Answers
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CIMA CIMAPRO17-BA2-X1-ENG Exam Syllabus Topics:

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

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

                                          Question #1

                                          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 and outflows incorporating revenue items only.
                                          • C. A detailed budget of estimated cash outflows only, incorporating both depreciation and capital expenditure.
                                          • D. A detailed budget of estimated cash inflows only, incorporating receipts from cash sales as well as from credit customers.
                                          Reveal Solution  Discussion  0

                                          Correct Answer: B  🗳️

                                          Explanation: Only visible for TestPDF members. You can sign-up / login (it's free).

                                          Question #2

                                          The concept of the time value of money:

                                          • A. recognises the fact that earlier cash flows are worth more because they can be reinvested.
                                          • B. recognises the fact that a cash flow received today will always be worth more than a larger cash flow received in the future.
                                          • C. is used for making short term decisions.
                                          • D. determines the higher interest rates that must be paid on longer term loans.
                                          Reveal Solution  Discussion  0

                                          Correct Answer: B  🗳️

                                          Explanation: Only visible for TestPDF members. You can sign-up / login (it's free).

                                          Question #3

                                          Which of the following would NOT require taking into account the time value of money?

                                          • A. Deciding to make a long-term investment in a project on the basis of its payback period.
                                          • B. Selecting an investment project on the basis that it has a positive net present value (NPV).
                                          • C. Taking a long-term investment decision on the basis of the project's internal rate of return (IRR).
                                          • D. Calculating the present value of a five-year annuity.
                                          Reveal Solution  Discussion  0

                                          Correct Answer: D  🗳️

                                          Explanation: Only visible for TestPDF members. You can sign-up / login (it's free).

                                          Question #4

                                          In responsibility accounting, costs and revenues are grouped according to:

                                          • A. their behaviour.
                                          • B. the service provided.
                                          • C. their function.
                                          • D. the budget holder.
                                          Reveal Solution  Discussion  0

                                          Correct Answer: A  🗳️

                                          Explanation: Only visible for TestPDF members. You can sign-up / login (it's free).

                                          Question #5

                                          Which of the following statements regarding variances is valid?

                                          • A. An adverse labour rate variance could explain a favourable labour efficiency variance.
                                          • B. Using higher quality material than standard could explain an adverse labour efficiency variance.
                                          • C. Improved maintenance of production machinery could explain an adverse material usage variance.
                                          • D. Poor supervision could explain a favourable labour rate variance.
                                          Reveal Solution  Discussion  0

                                          Correct Answer: A  🗳️

                                          Explanation: Only visible for TestPDF members. You can sign-up / login (it's free).

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