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CIMA Fundamentals of management accounting Sample Questions:

1. The International Federation of Accountants (IFAC) stated that it was important that "accountants in business" should understand what the drivers of stakeholder value are. Which of the following statements is valid?

A) Only an organisation's shareholders and employees can be considered to be its stakeholders.
B) Stakeholders must be external to the organisation.
C) Only an organisation's shareholders can be considered to be its stakeholders.
D) Anyone with an interest in an organisation can be considered to be one of its stakeholders.

2. Which of the following may result in a favourable material price variance? (Select ALL that apply.)

A) Discounted products
B) Efficient purchasing
C) Material price decrease
D) Inefficient purchasing
E) Inflation of prices

3. You are put in charge of a new, independent factory. The products you produce are cheap to produce but the profit margin is small. Maintaining low costs and maximum efficiency is key.
You are concerned that certain parts of the production line are producing excess waste and damaging profits.
Which type of cost centre would be most useful in this situation?

A) Function
B) Equipment
C) Activity
D) Service location

4. Refer to the exhibit.

The profit/volume graph below has been prepared for a product for which the following data are available for a period:
Selling price - $28 per unit
Variable cost - $23 per unit
Fixed cost - $4 per unit
Forecast sales volume is 1,000 units each period.
The value of P in units is:

5. The total cost of a product is £200.
In order to achieve a profit margin of 20% of sales, the selling price would have to be:
Give your answer to 2 decimal places.

Solutions: