CIMA BA2 Dumps - The Sure Way To Pass Exam
BA2 Exam Questions (Updated 2021) 100% Real Question Answers
NEW QUESTION 152
In responsibility accounting, costs and revenues are grouped according to:
- A. their function.
- B. their behaviour.
- C. the budget holder.
- D. the service provided.
Answer: B
NEW QUESTION 153
A flexible budget is:
- A. A budget that can be flexed if the activity level is different from forecast
- B. A budget that can be flexed if the inflation level is different from forecast
- C. A budget that can be flexed if unit variable costs are different from forecast
- D. A budget that can be flexed if fixed costs are different from forecast
Answer: A
NEW QUESTION 154
Refer to the exhibit.
Xey Ltd. has the following budgeted information for product T4 in July:
The actual results for July were as follows:
What is the total sales margin variance?
- A. £35,000 favourable
- B. £36,000 favourable
- C. £36,000 adverse
- D. £35,000 favourable
Answer: C
NEW QUESTION 155
The direct labor rate variance is:
- A. The difference between the actual wages paid and what should have been paid for the hours worked
- B. The difference between the actual wages paid and the standard labor cost for the output produced
- C. The difference between the actual rate of efficiency and the standard rate of efficiency for direct labor
- D. The standard wage rate multiplied by the difference between the actual hours worked and the standard hours needed for the output produced
Answer: A
NEW QUESTION 156
Over absorption of overhead will always arise when:
- A. actual overhead incurred is lower than budgeted overhead
- B. actual overhead incurred is lower than absorbed overhead
- C. absorbed overhead is higher than budgeted overhead
- D. absorbed overhead is lower than actual overhead incurred
Answer: B
NEW QUESTION 157
Which of the following statements relating to risk and uncertainty is correct?
- A. Uncertainty exists when we know all of the possible outcomes and their probabilities.
- B. Risk exists when we do not know all of the possible outcomes.
- C. Risk exists when we know all of the possible outcomes but not their probabilities.
- D. Uncertainty exists when we know all of the possible outcomes but not their probabilities.
Answer: B
NEW QUESTION 158
Which one of the following is NOT one of the main roles of the management accountant?
- A. Control operations and ensure the efficient use of resources
- B. Plan short-run operations
- C. Prepare statutory financial information such as the cash flow statement
- D. Implement corporate governance procedures and internal controls
Answer: C
NEW QUESTION 159
Refer to the exhibit.
The indirect costs of a hospital's Radiology Department consists mainly of equipment related costs. Details of the budget for Period 4 are:
The most appropriate overhead absorption rate is:
- A. 400% of radiologists' wages
- B. 10% of machine value
- C. £6 per machine hour
- D. £3 per staff hour
Answer: C
NEW QUESTION 160
Refer to the exhibit.
A company issued its production budget based on an anticipated output of 800 units. Actual output was 1000 units. The details of the costs are shown below:
The budget expenditure variance was:
- A. £5,000 adverse
- B. £1,000 favourable
- C. £3,000 adverse
- D. £5,000 favourable
Answer: B
NEW QUESTION 161
The standard variable cost of product A is $4 per unit and the standard selling price is $6.80 per unit.
During the latest period 1,200 units of product A were produced and sold, compared with a budget of 1,300 units.
The actual variable cost incurred was $4.90 per unit and the actual selling price was $6.50 per unit.
The sales volume contribution variance for the period was
- A. $160 adverse
- B. $680 adverse
- C. $390 adverse
- D. $280 adverse
Answer: D
NEW QUESTION 162
Eton Ltd. operates a manufacturing process that produces product A.
Information for this process last month is as follows:
(a) Opening work in progress - 2,500 kg valued at £2,000 for direct material and £1,500 for labour and overheads.
(b) Materials input - 25,000 kg at £2.10 per kg.
(c) Labour - £10,000
(d) Overheads - £5,000
(e) Output during the month - 20,000 kg.
(f) There were 7,500 units of closing work in progress which was complete as to materials and 30% complete as to conversion.
(g) Normal loss for the month was 3% of input and all losses have a scrap value of £1 per kg.
What was the average cost per kg of finished output during the month?
- A. £1.73
- B. £2.78
- C. £2.72
- D. £2.80
Answer: B
NEW QUESTION 163
Refer to the exhibit.
Storm Limited manufactures a single product, the cost and selling price of which are given below:
The breakeven point is:
Answer:
Explanation:
12500 units.
NEW QUESTION 164
Refer to the exhibit.
The budget for ORG for the month of September contained the following data:
During the month the actual number of units produced was 1,550. The management accounts showed a direct labour rate variance of $200 adverse and direct labour efficiency of $150 adverse.
The actual direct labour cost in the month was:
Answer:
Explanation:
$4997 adverse
NEW QUESTION 165
A standard hour is:
- A. A measure of output
- B. The standard time taken to produce one unit
- C. A measure of time
- D. The actual time taken to produce one unit
Answer: A
NEW QUESTION 166
A cash budget is an example of a:
- A. Flexible budget
- B. Rolling budget
- C. Fixed budget
- D. Variable budget
Answer: B
NEW QUESTION 167
During the completion of Job A, £1,000 worth of material was transferred to it from Job B which had finished ahead of schedule.
How will this be inputted into the Job B account?
- A. Job A, £1,000 credit
- B. Job B, £1,000 debit
- C. Job B, £1,000 credit
- D. Job A, £1,000 debit
Answer: A
NEW QUESTION 168
Place the following budgets in the order that they would be prepared. Assume that sales volume is the principal budget factor:
(a) Production
(b) Materials usage
(c) Sales
(d) Materials purchases
- A. (a), (c), (d), (b)
- B. (c), (a), (b), (d)
- C. (a), (c), (b), (d)
- D. (c), (a), (d), (b)
Answer: B
NEW QUESTION 169
The wages of a machine operator who is paid a guaranteed minimum wage plus a bonus for each unit produced would be described as A.
- A. Fixed cost
- B. Stepped fixed cost
- C. Variable cost
- D. Semi-variable cost
Answer: D
NEW QUESTION 170
Refer to the exhibit.
The standard labour cost per unit of product 'B' is $24 (6 hours @ $4 per hour).
During period 5 the following details were recorded:
The output during period 5 was?
Answer:
Explanation:
336 units of product 'B'.
NEW QUESTION 171
The managing director of a small expanding company has asked you to discuss the positioning of management accounting within his organization.
Which of the following would you suggest is an advantage of the management accountant taking on a business partnering role within the organization?
(i) It is easier for the management accountant to remain objective in decision making situations (ii) The management accountant is an integral part of the business (iii) It is easier to build strong relationships between the managers and the management accountant
- A. (i) only
- B. (i), (ii) and (iii)
- C. (i) and (ii)
- D. (ii) and (iii)
Answer: D
NEW QUESTION 172
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.
Answer:
Explanation:
4.46
NEW QUESTION 173
A company uses an integrated accounting system.
The accounting entries for an issue of indirect materials to production would be:
- A. Debit: Work in progress control account Credit: Raw material control account
- B. Debit: Finished goods control account Credit: Raw material control account
- C. Debit: Raw material control account Credit: Work in progress control account
- D. Debit: Production overhead control accountCredit: Raw material control account
Answer: D
NEW QUESTION 174
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