CIMA BA2 Valid Q&A - in .pdf

  • BA2 pdf
  • Exam Code: BA2
  • Exam Name: Fundamentals of management accounting
  • Updated: Sep 17, 2026
  • Q & A: 392 Questions and Answers
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CIMA BA2 Valid Q&A - Testing Engine

  • BA2 Testing Engine
  • Exam Code: BA2
  • Exam Name: Fundamentals of management accounting
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CIMA BA2 Exam Syllabus Topics:

SectionWeightObjectives
Planning and Control30%- Performance measurement and control
  • 1. Financial performance measures
  • 2. Non-financial performance measures
  • 3. Variance analysis
- Management reporting
  • 1. Interpretation of management information
  • 2. Preparation of management reports
- Budgeting
  • 1. Cash budgeting
  • 2. Preparation of budgets
  • 3. Budgetary control
Costing25%- Cost identification and classification
  • 1. Relevant and irrelevant costs
  • 2. Fixed, variable and semi-variable costs
  • 3. Direct and indirect costs
- Costing techniques
  • 1. Cost behaviour analysis
  • 2. Marginal costing
  • 3. Absorption costing
The Context of Management Accounting10%- Professional ethics and CIMA
  • 1. Role of CIMA
  • 2. Professional and ethical responsibilities
- Purpose of management accounting and the role of the management accountant
  • 1. Functions of management accounting
  • 2. Role of the management accountant
  • 3. Need for management accounting
Decision Making35%- Long-term decision making
  • 1. Relevant cash flow analysis
  • 2. Investment appraisal principles
- Short-term decision making
  • 1. Contribution analysis
  • 2. Break-even analysis
  • 3. Limiting factor analysis
- Risk and uncertainty
  • 1. Risk assessment techniques
  • 2. Sensitivity considerations

CIMA Fundamentals of management accounting Sample Questions:

Question #1

Refer to the Exhibit.

PJ Ltd has forecast that the relationship between total overheads and machine hours will be as follows:
If the budget is to be based on 4,000 machine hours, the variable overhead absorption rate will be:
*per machine hour.
Give your answer to 2 decimal places.

Reveal Solution  Discussion  0

Correct Answer:

4.46

Question #2

In investment appraisal, the calculation of the payback period

  • A. places the same value on all cash flows received over the whole life of a project.
  • B. places greater value on cash flows received in earlier years during the payback period.
  • C. places the same value on all cash flows received during the payback period.
  • D. places greater value on cash flows received in later years during the payback period.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #3

The principal budget factor can be defined as:

  • A. The factor which limits the activities of the organisation
  • B. The factor which is least likely to change in the future
  • C. The factor which is most likely to result in an adverse variance
  • D. The factor which has the highest value in the budget
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #4

C Ltd produces a chemical in a single process. Information for this process last month is as follows:
(a) Opening work in progress - 10000 kg valued at £10000 for direct material and £7500 for conversion costs.
(b) Materials input - 25000 kg at £1.10 per kg.
(c) Conversion costs - £17000
(d) Output during the month - 23000 kg.
(e) There were 7500 units of closing work in progress which was complete as to materials and 30% complete as to conversion.
(f) Normal loss for the month was 10% of input and all losses have a scrap value of 80p per kg.
What was the value of normal loss during the month?

Reveal Solution  Discussion  0

Correct Answer:

£1999

Question #5

Which one of the following statements about historical cost and economic value is correct?

  • A. The historical cost of an asset reduces as the remaining useful life of the asset reduces
  • B. The historical cost of an asset will always be lower than its economic value
  • C. The concept of economic value applies only to non-current assets
  • D. The economic value of an asset will depend on the alternative uses for the asset
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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