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CIMA Fundamentals of management accounting Sample Questions:

1. Refer to the exhibit.

Data from the management accounting reports for the DD Division of a company for the latest period are as follows.
The value added for the DD Division for the latest period was

A) $130,600
B) $394,750
C) $246,150
D) $253,600

2. Which of the following is NOT a characteristic of useful operational level information?

A) Focused on the decision to be made.
B) Governed by financial reporting standards.
C) Sufficiently accurate.
D) Available immediately.

3. The unit data for a product are:
(a) selling price £12
(b) variable cost £6.
If selling prices are reduced by 10% and variable costs are increased by 12.5%, which of the following is the revised profit/volume ratio?

A) 0.4875
B) 0.5
C) 0.375
D) 0.542

4. In the process account, the accounting treatment of the value of the abnormal gain is:

A) Credit Process account Debit Abnormal Gain account
B) Debit Process account Credit Normal Loss account
C) Debit Process account Credit Abnormal Gain account
D) Credit Process account Debit Normal Loss account

5. Within a relevant range of output, the fixed cost per unit of a product will:

A) Impossible to tell without more information
B) Increase as total output increases
C) Remain constant as total output increases
D) Reduce as total output increases

Solutions: