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CIMA CIMAPRO17-BA2-X1-ENG Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Planning and Control30%- Performance Measurement and Control
  • 1. Variance analysis
  • 2. Performance reporting
  • 3. Standard costing
- Budgeting
  • 1. Preparation of budgets
  • 2. Cash budgets
  • 3. Functional budgets
Topic 2: Costing25%- Absorption and Marginal Costing
  • 1. Marginal costing
  • 2. Full costing
  • 3. Profit reconciliation
  • 4. Pricing decisions
  • 5. Overhead allocation and apportionment
- Cost Identification and Classification
  • 1. Variable, semi-variable, stepped and fixed costs
  • 2. Relevant and irrelevant costs
  • 3. Cost behaviour analysis
  • 4. Direct and indirect costs
Topic 3: Decision Making35%- Investment and Strategic Decisions
  • 1. Use of accounting information for decision making
  • 2. Investment appraisal techniques
  • 3. Profit maximisation
- Short-Term Decision Making
  • 1. Cost-volume-profit analysis
  • 2. Limiting factor analysis
  • 3. Break-even analysis
  • 4. Make or buy decisions
Topic 4: The Context of Management Accounting10%- Purpose of Management Accounting
  • 1. Relationship between management accountants and managers
  • 2. Characteristics of financial information
  • 3. Role of the management accountant
  • 4. Need for management accounting
- Role of CIMA
  • 1. Professional body for management accountants
  • 2. Development of management accounting practice

CIMA BA2 – Fundamentals of Management Accounting Question Tutorial Sample Questions:

1. An organisation's management report contains the following data:

Which division has the highest operating margin percentage?

A) Division A
B) Division C
C) Division B
D) Division D


2. The possible returns and associated probabilities of two independent projects are as follows:

It has been decided that both projects are to be launched.
Which TWO of the following statements are correct? (Choose two.)

A) The expected value of the total return is $41,500 gain.
B) The probability of the total return being a gain is less than 1.00.
C) The probability of the total return being a loss is 0.10.
D) The expected value of the total return is $40,000 gain.
E) The probability of making a total return of exactly $5,000 gain is 0.02.


3. The concept of the time value of money:

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


4. Which of the following statements about batch costing is true?

A) The cost of a batch is found by multiplying the cost of one unit by the number of units in the batch.
B) The cost of a unit is found by dividing the cost of a batch by the number of units in the batch.
C) Batch costing must use marginal costing.
D) Batch costing must use absorption costing.


5. Which of the following would NOT require taking into account the time value of money?

A) Taking a long-term investment decision on the basis of the project's internal rate of return (IRR).
B) Selecting an investment project on the basis that it has a positive net present value (NPV).
C) Deciding to make a long-term investment in a project on the basis of its payback period.
D) Calculating the present value of a five-year annuity.


Solutions:

Question # 1
Answer: B
Question # 2
Answer: B,C
Question # 3
Answer: A
Question # 4
Answer: B
Question # 5
Answer: D

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