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CIMA Fundamentals of management accounting Sample Questions:
1. A manufacturing company has four production departments. Overheads have been apportioned between them as follows:
It takes each department 4 hours, 4 hours, 2 hours and 3 hours respectively to produce the company's only product. The company recovers costs on the basis of labour hours. They plan to produce 6,000 units What will the overhead absorption rate per unit be in £'s?
Select the correct answer from the choices below
A) £7JO
B) £7.50
C) £8.00
D) £7.90
2. In a manufacturing company which produces a range of products, the production manager's salary would be classified as A.
A) Indirect expense
B) Direct expense
C) Indirect labour cost
D) Direct labour cost
3. The gradient of the line plotted on a profit/volume (PV) graph is determined by:
A) The profit/volume ratio
B) The fixed costs
C) The number of units sold
D) The margin of safety
4. Refer to the exhibit.
RD operates as shopfitters in the retail industry. Job 265 involves the refit of a major city toy store. The following information is available for the job:
What is the selling price for Job 265?
A) $204,160
B) $171,400
C) $191,400
D) $182,827
5. In an integrated cost and financial accounting system, the accounting entries for the payment of net wages to indirect production workers would be:
A) Debit: Work in progress control accountCredit: Bank account
B) Debit: Bank accountCredit: Wages control account
C) Debit: Wages control accountCredit: Bank account
D) Debit: Production overhead control accountCredit: Bank account
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: C |
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