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CIMA Fundamentals of management accounting Sample Questions:

1. Refer to the exhibit.

RS operates a standard absorption costing system. The following data is available for the month of March.
The sales budget for the month of March was for 3,000 units to be sold giving sales revenue of $40,000.
The actual sales volume is

2. The concept of the time value of money:

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

3. When making a decision, for a cost or revenue to be classified as "relevant" it must be:
(a) Incremental
(b) Notional
(c) Cash
(d) Future

A) (a), (b) and (d) only
B) (b), (c) and (d) only
C) (a), (c) and (d) only
D) (a), (b) and (c) only

4. It is company policy that the closing inventory of finished goods must be equal to 10% of the following month's budgeted sales. The budget sales for November and December are 8,000 and 9,000 units respectively.
The budgeted production for November will be:

A) 8,100 units
B) 1,700 units
C) 8,900 units
D) 900 units

5. Which of the following would be the most appropriate cost unit for a transport delivery service?

A) Gallon
B) Tonne delivered
C) Tonne - mile
D) Gallon - tonne

Solutions: