Cima pass4test ba2 Premium Exam Questions by Adelina q267 vce pdf

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Exam Name:	Fundamentals of management accounting
Exam Code:	BA2 Dumps
Vendor:	CIMA	Certification:	CIMA Certificate
Questions:	392 Q&A's	Shared By:	adelina

Question 36

An organisation produces and sells a single product. The organisation’s management accountant has reported the following information for the most recent period.

Questions 36

Which TWO of the following statements are valid? (Choose two.)

Options:

If the contribution to sales ratio changed to 30%, the breakeven point would become higher.

If the fixed cost changed to $445,000, the breakeven point would not change.

If the sales volume changed to 220,000 units, the breakeven point would not change.

If the selling price changed to $22 per unit, the breakeven point would become lower.

If the variable cost changed to $16 per unit, the breakeven point would become lower.

Discussion

Question 37

Which of the following is NOT a valid purpose of budgeting?

Options:

To communicate targets to managers.

To comply with financial reporting requirements.

To coordinate the different activities of an organisation.

To authorise managers to incur expenditure.

Discussion

Question 38

Which of the following is a valid definition of a cash budget?

Options:

A detailed budget of estimated cash inflows and outflows incorporating both revenue and capital items.

A detailed budget of estimated cash inflows only, incorporating receipts from cash sales as well as from credit customers.

A detailed budget of estimated cash inflows and outflows incorporating revenue items only.

A detailed budget of estimated cash outflows only, incorporating both depreciation and capital expenditure.

Discussion

Question 39

A company has two production departments and two service departments (Maintenance and Stores). The overhead costs of each of the departments are as follows.

Questions 39

The following equations represent the reapportionment of each of the service department overheads to the other.

M = 4,700 + 0.1S

S = 5,800 + 0.2M

Where M = total Maintenance overhead after reapportionment from Stores

S = total Stores overhead after reapportionment from Maintenance

60% of the total Maintenance overhead and 50% of the total Stores overhead are to be apportioned to Production Department 1.

The total production overhead for Production Department 1 after reapportionment of the service departments’ overhead costs is closest to:

Options:

$71,672

$75,500

$70,720

$71,821

Discussion

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