F2 (MA/FMA) – Chapter 12a – PART D – CBE MCQs – ACCA

These are ACCA F2 (MA/FMA) Management Accounting MCQs for Part-D of the Syllabus “Budgeting”.

These MCQs are designed in a way that students could better understand the exam format and get used to practice online. This approach will reduce exam stress and enable students to prepare better.

We request the students, Not to solve the MCQs until they have learned and finished the entire F2 (MA/FMA) Management Accounting Chapter 12a – Capital expenditure budgeting and Syllabus Area Part-D “Budgeting”.

All the questions are compulsory, so do not skip any.


Course: ACCA – Associations of Chartered Certified Accountants
Fundamental Level: Knowledge, FIA – Foundation in Accounting
Subject: Management Accounting
Paper: F2 – MA/FMA
Chapter: Capital expenditure budgeting
Chapter Number: 12a of the Practice and Exam Kit
Syllabus Area: D – Budgeting
Questions Type: CBE MCQs
Exam Section Type: Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part D of the Syllabus; Budgeting of ACCA F2 (MA/FMA) Management Accounting Module.


These multiple-choice questions (MCQs) are not timed, allowing students to solve them without feeling any pressure and to pay proper attention to the questions.


Students can see their result at the end of the Quiz. They can also be able to see the number of correct and wrong questions. Moreover, the explanation of wrong questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seem correct/ or incorrect to you, as per the requirement of the question. Keep your eye on the wording “(select all those which are correct/ or incorrect)“.
Drop-down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

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F2 - Chapter 12a - Part A - MCQs

Course: ACCA - FIA
F2 (MA/FMA) Management Accounting
Chapter: 12a - Capital expenditure budgeting
Syllabus Area: D - Budgeting
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit


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1 / 4

A machine owned by a company has been idle for some months but could now be used on a one year contract which is under consideration. The net book value of the machine is $1,000. If not used on this contract, the machine could be sold now for a net amount of $1,200. After use on the contract, the machine would have no saleable value and the cost of disposing of it in one year's time would be $800.

What is the total relevant cost of the machine to the contract?


2 / 4

Which of the following would be part of the capital expenditure budget?

  1. Purchase of a new factory premises
  2. Replacement of existing machinery
  3. Refurbishment of existing factory premises
  4. Purchases of raw materials

3 / 4

You are currently employed as a Management Accountant in an insurance company. You are contemplating starting your own business. In considering whether or not to start your own business, what would your current salary level be?

4 / 4

In decision making, costs which need to be considered are said to be relevant costs. Which of the following are characteristics associated with relevant costs?

  1. Future costs
  2. Unavoidable costs
  3. Incremental costs
  4. Differential costs

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