CIMA BA2 Q&A - in .pdf

  • BA2 pdf
  • Exam Code: BA2
  • Exam Name: Fundamentals of management accounting
  • Updated: Aug 12, 2026
  • Q & A: 392 Questions and Answers
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CIMA BA2 Q&A - Testing Engine

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  • Exam Code: BA2
  • Exam Name: Fundamentals of management accounting
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CIMA BA2 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: The Context of Management Accounting10%- Professional ethics and CIMA
  • 1. Role of CIMA
  • 2. Professional and ethical responsibilities
- Purpose of management accounting and the role of the management accountant
  • 1. Need for management accounting
  • 2. Role of the management accountant
  • 3. Functions of management accounting
Topic 2: Costing25%- Cost identification and classification
  • 1. Direct and indirect costs
  • 2. Fixed, variable and semi-variable costs
  • 3. Relevant and irrelevant costs
- Costing techniques
  • 1. Marginal costing
  • 2. Cost behaviour analysis
  • 3. Absorption costing
Topic 3: Planning and Control30%- Budgeting
  • 1. Cash budgeting
  • 2. Budgetary control
  • 3. Preparation of budgets
- Management reporting
  • 1. Interpretation of management information
  • 2. Preparation of management reports
- Performance measurement and control
  • 1. Non-financial performance measures
  • 2. Financial performance measures
  • 3. Variance analysis
Topic 4: Decision Making35%- Risk and uncertainty
  • 1. Sensitivity considerations
  • 2. Risk assessment techniques
- Long-term decision making
  • 1. Investment appraisal principles
  • 2. Relevant cash flow analysis
- Short-term decision making
  • 1. Contribution analysis
  • 2. Limiting factor analysis
  • 3. Break-even analysis

CIMA Fundamentals of management accounting Sample Questions:

1. Within the relevant range, a variable cost is a cost which:

A) cannot be forecast with any degree of accuracy because of its variability.
B) varies in total in proportion to the level of inflation.
C) varies per unit in proportion to the level of activity.
D) varies in total in proportion to the level of activity.


2. The managing director of a small expanding company has a limited understanding of accounting and has asked you to explain the role of the management accountant in value creation.
Which ONE of the following is NOT a primary role of the management accountant?

A) Design and implementation of management information systems
B) Provision of strategic planning information to senior managers
C) Provision of routine performance information to junior managers
D) Provision of statutory financial information to the tax authorities


3. The value of the capital invested in producing and selling product F is $600,000. A return on investment of
14% is required from all products.
Budgeted production and sales of product F for next period are 25,000 units and the standard cost per unit is
$33.
In order to achieve the required return on investment the selling price per unit of product F must be

A) $37.62
B) $36.36
C) $3.36
D) $57.00


4. Refer to the exhibit.

A company manufactures a single product, and relevant data is as follows:
Note. Overheads are assumed to be related to direct labour hours.
The actual results for the period were as follows:

What is the variable overhead expenditure variance?

A) £4,000 adverse
B) £5,000 favourable
C) £4,000 favourable
D) £5,000 adverse


5. The concept of the time value of money:

A) determines the higher interest rates that must be paid on longer term loans.
B) is used for making short term decisions.
C) recognises the fact that earlier cash flows are worth more because they can be reinvested.
D) recognises the fact that a cash flow received today will always be worth more than a larger cash flow received in the future.


Solutions:

Question # 1
Answer: D
Question # 2
Answer: D
Question # 3
Answer: B
Question # 4
Answer: B
Question # 5
Answer: D

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