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CIMA Fundamentals of management accounting Sample Questions:

1. 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) $6,220 adverse.
C) $5,666 adverse.
D) $9,267 adverse.

2. RJD Ltd is preparing the production cost budget for the forthcoming year and has found that there is a linear relationship between production volume and production costs.
They have found that a production volume of 1,600 units corresponds to production costs of £40000 and that a production volume of 3,200 units corresponds to production costs of £48,000.
What would be the production costs for a production volume of 4,000 units?

A) £60,000
B) £120,000
C) £100,000
D) £52000

3. 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'?

4. Refer to the exhibit.

A company currently manufactures a component which has the following costs per unit:
If the fixed overhead costs are unavoidable costs, what is the maximum price the company should be willing to pay to buy-in the component?
Give your answer to 2 decimal places.

5. The following data relate to the latest period.

A statement is to be prepared that reconciles the difference between the flexible budget profit and the actual profit.
Which TWO of the following will appear on this statement? (Choose two.)

A) An adverse labour efficiency variance.
B) An adverse material price variance.
C) An adverse sales price variance.
D) A favourable sales volume contribution variance.
E) A favourable labour rate variance.

Solutions: