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CIMA BA2

BA2

Exam Code: BA2

Exam Name: Fundamentals of management accounting

Updated: Sep 18, 2026

Q&A Number: 392 Q&As

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CIMA BA2 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Decision Making35%- Risk and uncertainty
  • 1. Sensitivity considerations
  • 2. Risk assessment techniques
- Long-term decision making
  • 1. Relevant cash flow analysis
  • 2. Investment appraisal principles
- Short-term decision making
  • 1. Contribution analysis
  • 2. Break-even analysis
  • 3. Limiting factor analysis
Topic 2: The Context of Management Accounting10%- Purpose of management accounting and the role of the management accountant
  • 1. Functions of management accounting
  • 2. Need for management accounting
  • 3. Role of the management accountant
- Professional ethics and CIMA
  • 1. Professional and ethical responsibilities
  • 2. Role of CIMA
Topic 3: Planning and Control30%- Performance measurement and control
  • 1. Variance analysis
  • 2. Financial performance measures
  • 3. Non-financial performance measures
- Management reporting
  • 1. Preparation of management reports
  • 2. Interpretation of management information
- Budgeting
  • 1. Budgetary control
  • 2. Cash budgeting
  • 3. Preparation of budgets
Topic 4: Costing25%- Cost identification and classification
  • 1. Relevant and irrelevant costs
  • 2. Direct and indirect costs
  • 3. Fixed, variable and semi-variable costs
- Costing techniques
  • 1. Cost behaviour analysis
  • 2. Marginal costing
  • 3. Absorption costing

CIMA Fundamentals of management accounting Sample Questions:

Question #1
In an integrated cost and financial accounting system, the accounting entries for the purchase of raw material on credit would be:

A. Debit: Raw material control accountCredit: Payables control account
B. Debit: Payables control accountCredit: Cost of sales account
C. Debit: Cost of sales accountCredit: Payables control account
D. Debit: Payables control accountCredit: Work in progress control account


Question #2
Refer to the exhibit.

A manufacturing company makes a product called 'Delta'. Each unit of product 'Delta' uses 4 kgs of raw material. Data for next month's budget for product Delta is as follows:
How many units of product 'Delta' should be produced in the month?

A. 75500
B. 77041
C. 75990
D. 77010


Question #3
Refer to the exhibit.

A company has established that a particular cost item is semi-variable. Past records of costs at different levels of activity are as follows:
The fixed cost element for the cost item is:


Question #4
AB Ltd. is currently preparing its material usage budget for product 'Pep' for the forthcoming year. There will be 10,000 units of product 'Pep' produced during the forthcoming year. Each unit of 'Pep' requires 5 kgs of material 'X'.
Opening inventory of material 'X' is estimated to be 15,000 kgs and the company wishes to increase this level of inventory to 17,500 kgs by the end of next year.
The material usage budget for the forthcoming year is


Question #5
Refer to the exhibit.

Budgeted data for the month of August for product E is given below:
Each unit of E takes 8 labour hours to make and due to stringent quality control standards, 5% of units are rejected after completion.
The direct labour hour budget for the month of August is:


Solutions:

Question #1
Correct Answer: A
Question #2
Correct Answer: B
Question #3
Correct Answer: Only visible for members
Question #4
Correct Answer: Only visible for members
Question #5
Correct Answer: Only visible for members

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