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CIMA Fundamentals of management accounting Sample Questions:
1. Which of the following statements is correct?
(i) Public sector bodies use annual budgets and thus have no need for longer term strategic planning information (ii) Public sector budgets are fixed budgets therefore the use of flexible budgets for cost control purposes is not appropriate (iii) Public sector performance indicators include both financial and non-financial information
A) (ii) and (iii)
B) (ii) only
C) (i) and (ii)
D) (iii) only
2. How does Beyond budgeting help to resolve the weaknesses of traditional budgeting? (Select ALL that apply.)
A) Managers focus on keeping costs low in the short term to ensure maximised profits.
B) Managers are encouraged to designate responsibility to others to lessen their workload so they may concentrate on important tasks.
C) Managers are given incentives to meet or undercut budgets.
D) Managers are set goals and targets to achieve rather than abiding by strict budgets and variances.
E) Managers have a much larger scope of business goals that, when achieved, will increase shareholder value.
F) Managers are given more freedom and control over their business units under Beyond budgeting.
3. Refer to the exhibit.
The Solo Company makes only one type of product. The budgeted profit statement for the next year, when output is budgeted to be 50,000 units is:
The margin of safety is:
4. 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) $253,600
B) $130,600
C) $246,150
D) $394,750
5. 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) Semi-variable cost
B) Stepped fixed cost
C) Fixed cost
D) Variable cost
Solutions:
Question # 1 Answer: D | Question # 2 Answer: D,E,F | Question # 3 Answer: Only visible for members | Question # 4 Answer: A | Question # 5 Answer: A |
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