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CIMA Fundamentals of management accounting Sample Questions:

1. A profit margin of 20% of sales is the same as a profit on total cost of:
Give your answer to 2 decimal places.

2. During Period 8, 120kgs of material 'X' was purchased for a total cost of £1,920. This resulted in a materials price variance of £240 adverse.
What was the standard price per kg of Material 'X'?

3. The production manager of your company has asked you to explain the methods of overhead analysis used, in particular the meaning of reciprocal servicing.
Reciprocal servicing is:

A) where two or more service departments provide service to production departments and to each other
B) where one service department provides service to another and the second department reciprocates by not charging for its services
C) where only one service department exists which provides service to all production departments
D) where two or more service departments provide service to production departments but not to each other

4. Data for the latest period for a company which makes and sells a single product are as follows:

There were no budgeted or actual changes in inventories during the period.
The sales volume contribution variance for the period was:

A) $16,000 adverse.
B) $5,666 adverse.
C) $6,220 adverse.
D) $9,267 adverse.

5. Which one of the following is an example of operational management information?

A) A production schedule for tomorrow
B) A flexible budget control report for last month
C) An investment appraisal report
D) The annual cash budget

Solutions: