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  • Exam Name: Fundamentals of management accounting
  • Last Update: 22-Jun-2025
  • Questions and Answers: 392
  • Single Choice: 263 Q&A's
  • Multiple Choice: 38 Q&A's
  • Drag Drop: 1 Q&A's

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BA2 Questions and Answers

Question # 1

The gradient of the line plotted on a profit/volume (PV) graph is determined by:

A.

The fixed costs

B.

The number of units sold

C.

The margin of safety

D.

The profit/volume ratio

Question # 2

Two rival furniture manufacturers have recently merged together. Before the merge each party had three outlets and one factory each. Now they have two factories, six stores with another 3 planned in the next year.

Previously, one company had operated with function cost centres, looking at costs incurred by each department whilst the other had chosen to look at costs per activity.

Whilst the companies were small this worked and costs were easy to manage and issues could be dealt with quickly and efficiently. Since then costs have gone out of control as the old systems no longer work for this

large, nationwide company.

What is a suitable type of cost centre to use now?

A.

Activity

B.

Service location

C.

Equipment

Question # 3

Which of the following is not a relevant cost?

A.

Sunk cost

B.

Incremental cost

C.

Avoidable cost

D.

Differential cost

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