CIMA CIMAPRO17-BA2-X1-ENG : BA2 – Fundamentals of Management Accounting Question Tutorial

Which THREE of the following are parts of the master budget? (Choose three.)

• A. Administration overhead budget.
• B. Sales budget.
• C. Cash flow budget.
• D. Finished goods inventory budget.
• E. Budgeted statement of financial position.
• F. Budgeted statement of profit or loss.

Which of the following is a valid definition of a cash budget?

• A. A detailed budget of estimated cash inflows and outflows incorporating both revenue and capital items.
• B. A detailed budget of estimated cash inflows only, incorporating receipts from cash sales as well as from credit customers.
• C. A detailed budget of estimated cash inflows and outflows incorporating revenue items only.
• D. A detailed budget of estimated cash outflows only, incorporating both depreciation and capital expenditure.

The budget and actual cost statements for the production department for the latest period were as follows.

Notes.
1. The 10% increase in production was required to meet unexpected additional sales demand.
2. The production manager is responsible for negotiating the price of materials with suppliers.
3. The normal working time is 900 hours per period. Any overtime worked above these 900 hours is paid at a premium of 50%.
In preparing the flexible budget for the latest period, which TWO of the following statements are correct?
(Choose two.)

• A. The material quantity should be flexed to 60,000 + 10% = 66,000 kg.
• B. The fixed costs should be flexed to $40,000 + 10% = $44,000.
• C. The basic pay hours should not be flexed; they should remain at 1,000 hours.
• D. The material price should be flexed to the actual figure of $3.10 per kg.
• E. The overtime hours should be flexed to (1,000 + 10%) - 900 = 200 hours.

The possible returns and associated probabilities of two independent projects are as follows:

It has been decided that both projects are to be launched.
Which TWO of the following statements are correct? (Choose two.)

• A. The expected value of the total return is $40,000 gain.
• B. The expected value of the total return is $41,500 gain.
• C. The probability of the total return being a gain is less than 1.00.
• D. The probability of the total return being a loss is 0.10.
• E. The probability of making a total return of exactly $5,000 gain is 0.02.

According to CIMA's Code of Ethics, CIMA members should not allow bias, conflict of interest of the influence of other people to override their professional judgement.
This is an example of:

• A. integrity.
• B. professional behaviour.
• C. objectivity.
• D. professional competence and due care.