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Free CIMA BA2 Sample Questions
Question 1
Fixed costs can best be described as:
A. Costs which are difficult to budget accurately
B. Costs which remain constant, within a relevant range, when activity levels change
C. Costs which never change
D. Costs which are uncontrollable
Answer: B
Question 2
Within the relevant range, a variable cost is a cost which:
A. cannot be forecast with any degree of accuracy because of its variability.
B. varies in total in proportion to the level of activity.
C. varies per unit in proportion to the level of activity.
D. varies in total in proportion to the level of inflation.
Answer: B
Question 3
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. Double
B. Move to the lef
C. Stay the same
D. Move to the right
Answer: D
Question 4
In order to provide information that is suitable for control purposes, the budget must be:
A. Computer generated
B. Fixed
C. Flexed
D. Ideal
Answer: C
Question 5
Which of the following cannot be used to split costs into fixed and variable elements?
A. Absorption costing
B. High-low method
C. Scattergraph
D. Line of best fit
Answer: A
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