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CIMA BA2 exam : Fundamentals of management accounting

BA2 Exam Simulator
  • Exam Code: BA2
  • Exam Name: Fundamentals of management accounting
  • Updated: Sep 16, 2026
  • Q & A: 392 Questions and Answers
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CIMA BA2 Exam Syllabus Topics:

SectionObjectives
Topic 1: Cost Accounting Fundamentals- Role and purpose of cost accounting
- Introduction to management accounting
Topic 2: Costing Methods- Job costing and batch costing
- Overhead allocation and absorption costing
- Process costing basics
Topic 3: Cost Classification and Behaviour- Fixed, variable, and semi-variable costs
- Cost behaviour patterns and analysis
Topic 4: Budgeting and Planning- Introduction to budgeting
- Basic forecasting techniques

CIMA Fundamentals of management accounting Sample Questions:

Question #1

A fixed budget is:

  • A. A budget which shows costs and revenues at different levels of activity
  • B. A budget for fixed overheads
  • C. A budget which shows costs and revenues for a single level of activity
  • D. A budget prepared on a continuous basis
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #2

In an integrated cost and financial accounting system, the accounting entries for PAYE deducted from gross wages would be:

  • A. Debit: PAYE payable account Credit: Bank account
  • B. Debit: Wages control account Credit: PAYE payable account
  • C. Debit: Production overhead control account Credit: Bank account
  • D. Debit: Wages control account Credit: Bank account
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #3

Refer to the exhibit.

The profit/volume graph below has been prepared for a product for which the following data are available for a period:
Selling price - $28 per unit
Variable cost - $23 per unit
Fixed cost - $4 per unit
Forecast sales volume is 1,000 units each period.
The value of P in units is:

Reveal Solution  Discussion  0

Correct Answer:

800

Question #4

The net present value (NPV) of an investment is as follows.
NPV at 14% = $6,320
NPV at 18% = ($4,600) negative
The internal rate of return (IRR) of the investment is closest to

  • A. 16.0%
  • B. 16.3%
  • C. 14.6%
  • D. 20.3%
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #5

A company operates an absorption costing system. Overheads are absorbed using a pre-determined absorption rate using labour hours. In the period actual labour hours were 10,600, 400 hours below budget. Actual overheads for the period were £234,680 and there was an under-absorption of overheads of £1,480.
What was the budgeted level of overheads?

  • A. £242,000
  • B. £233,200
  • C. £224,720
  • D. £245,072
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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