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Updated: May 27, 2026
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CIMA Fundamentals of management accounting Sample Questions:
1. GB Limited operates a standard costing system. During the month 18,500 labour hours were worked at a standard cost of $6 per hour. The labour efficiency variance was $8,700 favourable.
How many standard hours were produced?
A) 18,500
B) 17,050
C) 1,450
D) 19,950
2. Refer to the exhibit.
The following standard cost information relates to the production department of Brace Engineering Ltd.
The actual data for the month of March was as follows:
What is the direct labour rate variance (to the nearest whole number)?
A) £2,500 favourable
B) £2,656 favourable
C) £2,656 adverse
D) £2,500 adverse
3. Refer to the exhibit.
A company issued its production budget based on an anticipated output of 800 units. Actual output was 1000 units. The details of the costs are shown below:
The budget volume variance was:
4. A company uses an integrated accounting system.
The accounting entries for an issue of indirect materials to production would be:
A) Debit: Work in progress control account Credit: Raw material control account
B) Debit: Production overhead control accountCredit: Raw material control account
C) Debit: Raw material control account Credit: Work in progress control account
D) Debit: Finished goods control account Credit: Raw material control account
5. The master budget is:
A) The income statement
B) A consolidation of all subsidiary budgets
C) The cash budget
D) The budget for the principal budget factor
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: Only visible for members | Question # 4 Answer: B | Question # 5 Answer: B |
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