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  • Exam Name: Fundamentals of Management Accounting
  • Last Update: 04-Jun-2023
  • Questions and Answers: 382
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BA2 Questions and Answers

Question # 1

Each finished carton of product P contains 15 litres of liquid L. During the production process there is an unavoidable loss of 20% of the liquid input. The standard price of liquid L is $2 per litre.

The standard ingredient cost for liquid L shown on the standard cost card for one carton of product P will be

A.

$18.75

B.

$30.00

C.

$36.00

D.

$37.50

Question # 2

Within the relevant range, a variable cost is a cost which:

A.

cannot be forecast with any degree of accuracy because of its variability.

B.

varies in total in proportion to the level of activity.

C.

varies per unit in proportion to the level of activity.

D.

varies in total in proportion to the level of inflation.

Question # 3

Refer to the exhibit.

BA2 question answer

T operates a process costing system. Data is available for Process A for the month of July.

Inputs for the month:

Normal losses are 15% of input and can be sold for $6 per kg. Actual output was 2,600 kg. There is no opening or closing work in progress for the period.

What is the value of the output from the process in the month?

A.

$49,291

B.

$46,538

C.

$43,784

D.

$45,120

Question # 4

Refer to the exhibit.

BA2 question answer

The budget for product Sentra for the month of August is given below:

  • Each unit of Sentra requires 4kg of raw materials.
  • The raw materials purchases budget for the month of August is:

A.

512,000 kg

B.

516,000 kg

C.

496,000 kg

D.

722,000 kg

Question # 5

Which one of the following is a characteristic of strategic financial information?

A.

Detailed and accurate

B.

Provided mainly to junior managers

C.

Provided daily to keep managers informed

D.

Provides information for long term decision making

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