- Exam Code: BA2
- Exam Name: Fundamentals of management accounting
- Updated: Oct 01, 2026
- Q & A: 392 Questions and Answers
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| Section | Objectives |
|---|---|
| Topic 1: Budgeting and Planning | - Introduction to budgeting - Basic forecasting techniques |
| Topic 2: Cost Accounting Fundamentals | - Role and purpose of cost accounting - Introduction to management accounting |
| Topic 3: Costing Methods | - Job costing and batch costing - Overhead allocation and absorption costing - Process costing basics |
| Topic 4: Cost Classification and Behaviour | - Cost behaviour patterns and analysis - Fixed, variable, and semi-variable costs |
The following is an extract from a budgetary control report for the latest period:
The budget variance for prime cost is:
Correct Answer: B 🗳️
Refer to the exhibit.
A project is forecast to generate the following cash flows.
Using three decimal places in all discount factors, the net present value (NPV) for the project at a cost of capital of 14.5% is (to the nearest $)
Correct Answer:
$7616
Refer to the exhibit.
The following data relates to Department A within a business unit.
The overhead absorption rate per direct labour hour for Department A is:
Give your answer to 2 decimal places.
Correct Answer:
£7.93
Refer to the exhibit.
A company issued its production budget based on an anticipated output of 2000 units. The actual output for the period was 1500 units. The details of the costs are shown below:
What was the budget expenditure variance?
Correct Answer: B 🗳️
Refer to the exhibit.
A company has the following budget information for next year:
The budgeted profit for the year is
Correct Answer: A 🗳️
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