CIMA BA2 Dumps PDF - Best Study Material| Exam4help.com

Question: 1

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 

Question: 2

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: 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 left

C. Stay the same

D. Move to the right

Answer: D

Question: 4

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: 5

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: 6

Which of the following statements is correct?

i. sector bodies use budgetary planning and control systems

ii. costing cannot be used by public sector bodies because they have no measurable output

iii. in public sector bodies tend to focus on cost management therefore they have no need for

nonfinancial information

A. (i) only

B. (i) and (ii) only

C. (ii) and (iii) only

D. (i) and (iii) only

Answer: A 

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