CIMA BA2 Question Answer
A company operates a flexible budget system. A budget for direct material cost is set at £12500 for 2500 kgs of material.
It is budgeted that all materials will be obtained at a 5% discount when total production is in excess of 2700 kgs.
What variance is reported if actual material usage is 3000 kgs and the actual cost is £13500?
CIMA BA2 Summary
- Vendor: CIMA
- Product: BA2
- Update on: Jul 29, 2025
- Questions: 392
