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CIMA Fundamentals of management accounting Sample Questions:

1. The wages of a machine operator who is paid by the hour would be described as A.

A) Semi-variable cost
B) Variable cost
C) Fixed cost
D) Stepped fixed cost

2. Refer to the exhibit.

A machine costing $47,000 will generate the following accounting profits:
The annual charge for depreciation is $9,000.
The payback period for the investment in the machine is closest to:

A) 3 years 3 months
B) 1 year 8 months
C) 2 years 5 months
D) 1 year 10 months

3. When sales and output have passed the break-even point, the contribution per unit, for each unit then sold, becomes:

A) The margin of safety
B) Smaller
C) The profit per unit
D) Bigger

4. The forecast costs per unit for a new product are as follows:

The company uses marginal cost plus pricing and all products are required to achieve a 40% margin.
What would be the selling price per unit?

A) $55.00
B) $45.00
C) $46.20
D) $37.80

5. The principal budget factor can be defined as:

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

Solutions: