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CIMA Fundamentals of management accounting Sample Questions:

1. Refer to the exhibit.

A manufacturing company makes a product called 'Delta'. Each unit of product 'Delta' uses 4 kgs of raw material. Data for next month's budget for product Delta is as follows:
How many units of product 'Delta' should be produced in the month?

A) 75500
B) 77010
C) 77041
D) 75990

2. A profit margin of 20% of sales is the same as a profit on total cost of:
Give your answer to 2 decimal places.

3. A company's cash budgetary plans show that there will be surplus cash for three months of the forthcoming year.
Which THREE of the following would be appropriate management actions in this situation?

A) Offer a longer credit period to new customers to boost sales
B) Pay suppliers early to obtain prompt payment discounts
C) Purchase new non-current assets to increase efficiency
D) Repay a long-term loan to reduce interest costs
E) Reduce the finished goods inventory to save storage costs
F) Invest in a short-term deposit account

4. Refer to the exhibit.

In this profit/volume graph, which distance indicates the contribution earned at level of activity L?

A) Distance c
B) Distance b
C) Distance d
D) Distance a

5. 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.

Solutions: