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 BA2 Dumps with Practice Exam Questions Answers

Questions: 382 questions

Last Update: Aug 17, 2022

CIMA Certification Exam BA2 has been designed to measure your skills in handling the technical tasks mentioned in the certification syllabus

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BA2 Questions and Answers

Question # 1

The possible returns and associated probabilities of two independent projects are as follows:

It has been decided that both projects are to be launched.

Which TWO of the following statements are correct? (Choose two.)


The expected value of the total return is $41,500 gain.


The probability of the total return being a loss is 0.10.


The probability of making a total return of exactly $5,000 gain is 0.02.


The probability of the total return being a gain is less than 1.00.


The expected value of the total return is $40,000 gain.

Question # 2

Which of the following is NOT a valid purpose of budgeting?


To communicate targets to managers.


To comply with financial reporting requirements.


To coordinate the different activities of an organisation.


To authorise managers to incur expenditure.

Question # 3

Assume that a unit of output is the cost object. Which of the following statements is valid?


Royalties paid on per unit basis are an example of an indirect expense.


Materials consumed in the maintenance of machinery used to manufacture several different products are an example of a direct material cost.


The salaries of supervisors who oversee the manufacture of several different products are an example of a direct labour cost.


Rent paid for a factory in which several different products are produced is an example of an indirect expense.

Question # 4

A project is about to be launched. Two of the three possible outcomes and their associated probabilities are as follows:

The remaining possible outcome is a $70,000 gain.

What is the correct calculation of the expected value of the project?


($30,000 + $70,000 - $25,000) / 3


($30,000 + $70,000 - $25,000) x (0.7 + (1.0 - (0.2 + 0.7)) + 0.2)


($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) + ($25,000 x 0.2)


($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) - ($25,000 x 0.2)

Question # 5

A company uses full cost pricing. The unit costs for product Z are given below.

What price per unit should be charged in order to achieve a profit margin of 20%?

Give your answer to the nearest cent.

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