CIMAPRO19-P01-1-ENG Practice Online

Question 1

A company's budget for the next period shows that it would breakeven at sales revenue of $800,000 and fixed costs of $320,000.

The sales revenue needed to achieve a profit of $200,000 in the next period would be:

A : $1,950,000

B : $1,780,000

C : $1,400,000

D : $1,300,000

E : $1,390,000

Answer: D

Question 2

Which THREE of the following statements about different costing systems are correct?

A : Contribution per unit is the selling price per unit minus the variable costs per unit.

B : In a period during which finished goods inventory levels fall, profit using marginal costing will be higher than if absorption costing is used.

C : When valuing inventory using throughput costing, the direct labour cost is excluded.

D : Over-absorption of fixed production overhead is caused by actual sales exceeding budgeted sales.

E : Finished goods inventory will be assigned a higher value using throughput costing than absorption costing.

Answer: A,B,C

Question 3

A company accountant is trying to determine the optimum production plan for the period using linear programming.
The accountant has correctly formulated the linear programming problem as follows:
Variables (products): x and y
Objective function: Maximise contribution, C = 10x + 15y
Material constraint: 4x + 6y 500 (kg)
Labour constraint: x + 2y 350 (hours)
Machine constraint: 10x + 4y 1,500 (hours)
x constraint: 50 x 200
y constraint: y 0
Which of the following statements is true?

A : The selling price of y is $15.

B : The maximum demand for product x is 50 units.

C : Product x requires twice as much labour time as Product y.

D : Product y requires 4 machine hours to manufacture.

Answer: D

Question 4

THS produces two products from different combinations of the same resources. Details of the products are shown below:

Identify, using graphical linear programming, the optimal production plan for products E and R to maximize THS's profit in the month.

A : The solution (from the graph0 is to produce 675 units of E and 470 units of R.

B : The solution (from the graph0 is to produce 495 units of E and 670 units of R.

C : The solution (from the graph0 is to produce 475 units of E and 770 units of R.

D : The solution (from the graph0 is to produce 375 units of E and 750 units of R.

E : The solution (from the graph0 is to produce 375 units of E and 870 units of R.

F : The solution (from the graph0 is to produce 495 units of E and 470 units of R.

Answer: D

Question 5

Christian the management accountant at a car manufacturer has been given a list of costs that have been incurred due to accidents and errors either occurring or being prevented.
Which of the following are examples of non-conformance costs? Select ALL that apply.

A : Cost of scrap

B : Loss of goodwill

C : Cost of repairs to products

D : Inspection costs

E : Cost of repairs to equipment

Answer: A,B,C

Name:	P1 Management Accounting
Exam Code:	CIMAPRO19-P01-1-ENG
Certification:	CIMA Professional Qualification
Vendor:	CIMA
Total Questions:	261
Last Updated:	May 15, 2024

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