CIMA Certificate in Business Accounting Practice Questions — All Questions
AllBusiness EconomicsManagement AccountingFinancial AccountingEthics & Corporate GovernanceBusiness Mathematics
4 questions
Management Accounting
A cost that varies in direct proportion to output is a:
- a.Fixed cost
- b.Variable cost✓
- c.Sunk cost
- d.Step cost that never changes
Variable costs change proportionally with the level of activity.
Management Accounting
Contribution per unit equals selling price per unit minus:
- a.Variable cost per unit✓
- b.Fixed cost per unit
- c.Total cost
- d.Tax per unit
Unit contribution = selling price - variable cost per unit.
Management Accounting
A budget is best described as:
- a.A record of past results
- b.An audit report
- c.A quantitative plan for a future period✓
- d.A tax return
A budget is a financial/quantitative plan for the future.
Management Accounting
Break-even output in units is fixed costs divided by:
- a.Selling price
- b.Variable cost
- c.Total cost
- d.Contribution per unit✓
Break-even units = fixed costs / contribution per unit.