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CIMA CIMAPRO17-BA2-X1-ENG : BA2 – Fundamentals of Management Accounting Question Tutorial

CIMAPRO17-BA2-X1-ENG

Exam Code: CIMAPRO17-BA2-X1-ENG

Exam Name: BA2 – Fundamentals of Management Accounting Question Tutorial

Updated: Jul 29, 2026

Q & A: 60 Questions and Answers

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

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

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

1. The concept of the time value of money:

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


2. In responsibility accounting, costs and revenues are grouped according to:

A) their function.
B) their behaviour.
C) the budget holder.
D) the service provided.


3. A small airport's management accountant has prepared the following management report on the performance of its four retail outlets.

Which retail outlet has the highest contribution per square metre?

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


4. Which type of budget would be the most suitable for a cash budget?

A) Fixed budget
B) Rolling budget
C) Incremental budget
D) Flexible budget


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) Deciding to make a long-term investment in a project on the basis of its payback period.
C) Selecting an investment project on the basis that it has a positive net present value (NPV).
D) Calculating the present value of a five-year annuity.


Solutions:

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

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