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CIMA Fundamentals of management accounting Sample Questions:

1. Refer to the exhibit.

The budgetary control report for the latest period shows the following. Variances in brackets are adverse.
The sales volume contribution variance for the period was

A) $500 favorable
B) $26,700 adverse
C) $27,200 adverse
D) $4,500 favorable

2. SP Limited operates an absorption costing system. It uses a predetermined overhead absorption rate based on machine hours. Budgeted factory overheads for the year were £1,080,000 but actual overhead incurred was
£1,046,000. Budgeted machine hours were 120,000 and actual machine hours were 119,000.
Overheads for the period were.

A) Under-absorbed by £25,000
B) Under-absorbed by £9,000
C) Over-absorbed by £9,000
D) Over-absorbed by £25,000

3. Refer to the exhibit.

Which of the following journal entries are required to record the wages payable?
The journal entries required to record the wages payable are:

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

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

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

5. Variable costs can best be described as:

A) Costs that vary with a measure of activity
B) Uncontrollable costs
C) Costs that fluctuate widely
D) Costs that are not affected by changes in the level of activity

Solutions: