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CIMA Fundamentals of management accounting Sample Questions:

1. Which one of the following is an advantage of placing the management accounting function within a centralized finance department?

A) The management accounting function is an integral part of the business
B) Communications are improved between the managers and the management accountant
C) Costs are reduced
D) The management accountant obtains better knowledge of specific parts of the business

2. Overtime worked as a result of a rush order at the customers request should be classified as a:

A) Direct labour cost
B) Production overhead cost
C) Administration overhead cost
D) Direct expense

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

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

5. The correlation coefficient is calculated using which of the following values;

A) Mean
B) Variance
C) Spread
D) Mode
E) Standard deviation
F) Range

Solutions: