Management Accounting (BA2)
150 questions mapped to the CIMA Certificate syllabus (Fundamentals of Management Accounting): stable since 2017, with no annual changes unlike ACCA. BA2 is the most calculation-intensive Certificate paper: costing, overhead absorption, marginal vs absorption profit, budgeting, variance analysis, CVP analysis, and investment appraisal. Switch to Exam Sim mode for a timed CIMA BA2 mock exam: 60 questions, 2 hours.
→ BA2 Common Mistakes & Exam Technique: the errors that catch BA2 students out, and how to avoid them.
The BA2 exam format
| Format | Computer-based objective test. All questions are compulsory. |
|---|---|
| Length | 2 hours, 60 questions. |
| Scoring | Reported as a scaled score from 0 to 150. Questions are weighted by difficulty, so the scaled score is not a straight percentage of questions answered correctly. |
| Pass mark | 100 out of 150. |
Always check the current exam format on the AICPA & CIMA website before you sit.
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BA2 Formula Sheet: all key formulas on one printable A4 page. Free to download, or see what's on it.
↓ Download PDFSample BA2 questions
Three questions from this bank, each with its answer and worked explanation. The quiz above draws from all 150.
A company makes two products and machine hours are the only scarce resource. Product X earns £30 contribution per unit and uses 3 machine hours. Product Y earns £24 contribution per unit and uses 2 machine hours. Which product should be prioritised, and why?
- Product X, because it earns the higher contribution per unit
- Product Y, because it uses fewer machine hours per unit
- Product Y, because it earns the higher contribution per machine hour
- Product X, because it earns the higher contribution per machine hour
Show answer and explanation
Answer: C. When one resource is scarce, products are ranked by contribution per unit of the limiting factor, not per unit of product. Product X earns £30 ÷ 3 = £10 per machine hour; Product Y earns £24 ÷ 2 = £12 per machine hour. Product Y therefore generates more contribution from each scarce machine hour and should be prioritised. Ranking by contribution per unit (which would point to Product X) is the classic error; choosing on resource use alone ignores contribution; and the answer naming Product X on a per-machine-hour basis states the right rule but the wrong product.
A cash budget projects a significant cash shortfall in three months' time. Which of the following is the most appropriate management response?
- Arrange short-term financing, such as an overdraft facility, in advance
- Immediately increase the selling price of all products
- Stop preparing cash budgets to avoid the warning
- Record the projected shortfall as an expense in the income statement
Show answer and explanation
Answer: A. The value of a cash budget is that it gives advance warning, allowing management to arrange financing or reschedule payments before the shortfall occurs. Raising all prices is a drastic step that could reduce demand and is not the direct response to a timing issue. Ceasing to budget removes the early-warning benefit entirely. A projected shortfall is not an accounting expense — it is a forecast cash position, not a transaction.
A company rents an additional warehouse unit each time its storage needs exceed the capacity of the units it already holds. Within each capacity band the total rental cost is constant. How is this cost best classified?
- Variable cost
- Semi-variable cost
- Stepped fixed cost
- Pure fixed cost
Show answer and explanation
Answer: C. The cost is fixed within a range of activity but jumps to a new fixed level once capacity is exceeded — the defining pattern of a stepped fixed cost. A variable cost would change continuously with each unit stored. A semi-variable cost has both a fixed and a variable element that varies with every unit. A pure fixed cost would not change at all across the activity range described. Recognising stepped costs matters because treating them as ordinary fixed costs understates cost at higher activity.
About this question bank
150 questions across 4 syllabus sections, each mapped to a reference in the official CIMA syllabus for BA2 and each with a worked explanation. 70 are multiple choice and 80 are numerical, where you work the answer out before choosing it.
- Written to CIMA's 2017 Certificate in Business Accounting syllabus.
- Spotted a mistake? Report it and it will be corrected.
| Syllabus section | Questions |
|---|---|
| A: Context | 15 |
| B: Costing | 37 |
| C: Planning & Control | 45 |
| D: Decision Making | 53 |