Fundamentals of management accounting: BA2 Exam

"Fundamentals of management accounting", also known as BA2 exam, is a CIMA Certification. With the complete collection of questions and answers, PrepPDF has assembled to take you through 392 Q&As to your BA2 Exam preparation. In the BA2 exam resources, you will cover every field and category in CIMA Business Accounting Certification helping to ready you for your successful CIMA Certification.

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  • Exam Code: BA2
  • Exam Name: Fundamentals of management accounting
  • Certification Provider: CIMA
  • Corresponding Certification: CIMA Business Accounting
  • Updated: Sep 10, 2026
  • No. of Questions: 392 Questions & Answers with Testing Engine
  • Download Limit: Unlimited

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CIMA BA2 Exam Syllabus Topics:

SectionWeightObjectives
Costing25%- Overhead allocation, apportionment and absorption
- Marginal and absorption costing
- Cost classification and behaviour
- Cost estimation techniques
- Job, batch, process and service costing
The Context of Management Accounting10%- Role of CIMA and professional ethics
- Global Management Accounting Principles
- Role and purpose of management accounting
- Characteristics of useful financial information
Decision Making35%- Risk and uncertainty analysis
- Pricing decisions
- Investment appraisal techniques
- Relevant costing for short-term decisions
- Cost-volume-profit analysis
Planning and Control30%- Standard costing and variance analysis
- Budgeting methods and techniques
- Budgeting concepts and preparation
- Performance measurement and reporting

CIMA Fundamentals of management accounting Sample Questions:

Refer to the exhibit.

A machine costing $47,000 will generate the following accounting profits:
The annual charge for depreciation is $9,000.
The payback period for the investment in the machine is closest to:

  • A. 2 years 5 months
  • B. 1 year 8 months
  • C. 1 year 10 months
  • D. 3 years 3 months
Answer: C

Refer to the exhibit.

A company operates a process costing system. The following data relates to Process X for the month of September.
Normal loss is 5% of input and all losses occur at the end of the process.
The number of equivalent units, using an average cost basis of valuation, was:
Materials:

Answer:

44117

Overhead apportionment is best described as:

  • A. The identification of costs specifically attributable to a particular cost centre
  • B. The identification of overhead cost variances
  • C. The process of sharing costs amongst two or more cost centers
  • D. The charging of overheads to cost units produced
Answer: C

If the fixed costs are increased, the point at which the line plotted on a profit/volume (PV) graph cuts the horizontal axis will:

  • A. Stay the same
  • B. Move to the right
  • C. Double
  • D. Move to the left
Answer: B

A company uses an integrated accounting system.
The accounting entries for the issue of direct materials to production would be:

  • A. Debit: cost of sales control account
    Credit: raw material control account
  • B. Debit: raw material control account
    Credit: production overhead control account
  • C. Debit: raw material control account
    Credit: work in progress control account
  • D. Debit: work in progress control account
    Credit: raw material control account
Answer: D

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