CIMA certification practice

CIMAPRO19-P01-1 Practice Questions

Try 10 free CIMAPRO19-P01-1 exam-style questions for P1 Management Accounting. Check each answer and review the explanation and source references.

Exam code
CIMAPRO19-P01-1
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CIMA
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260 questions
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When preparing data for a short term decision, which THREE of the following are relevant costs?
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EF manufactures and sells three products, X, Y and Z. The following production overhead costs are budgeted for next year: CIMA CIMAPRO19 P01 1 question Required: Calculate the total budgeted production overhead cost for each product using activity based budgeting.
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A company produces a product that requires two materials, Material A and Material B. Details of the material quantities and costs for August are given in the table below. CIMA CIMAPRO19 P01 1 question Budgeted and actual output of the product for August was 12,000 units. The material yield variance for August is:
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TP makes wedding cakes that are sold to specialist retail outlets which decorate the cakes according to the customers’ specific requirements. The standard cost per unit of its most popular cake is as follows: CIMA CIMAPRO19 P01 1 question The general market prices at the time of purchase for Ingredient A and Ingredient B were $23 per kg and $20 per kg respectively. TP operates a JIT purchasing system for ingredients and a JIT production system; therefore, there was no inventory during the period. Discuss the usefulness of the planning and operational variances calculated for TP’s management. Select ALL the TRUE statements.
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A manager has not yet used all oh his budget. He is worried that his budget maybe reduced next year if he is not seen to have needed all the funds. He decides to spend the remaining £1,580 on another team building exercise as well as a catered lunch for his department. This example falls under which behavioural aspect of budgetary control?
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A company develops computer software programs to meet each client's specific requirements. The management accountant is considering introducing a standard costing system. Which THREE of the following are reasons that support the case for the company's introduction of a standard costing system?
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‘A zero-based budgeting system involves establishing decision packages that are then ranked in order of their relative importance in meeting the organization’s objectives’. Which of the following is true regarding he difficulties that a not-for-profit organization may experience when trying to rank decision packages. Select ALL true statements.

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‘Public sector organizations are often judged by their economy, efficiency and effectiveness. Consequently, they should use an approach to budgeting other than incremental budgeting.’ Required: Explain ONE advantage and TWO disadvantages of public sector organizations using incremental budgeting. Select all true statements.
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PQR is preparing the production budget for one of its products, the DX1, for the forthcoming year. The following information is available: CIMA CIMAPRO19 P01 1 question How many units of the DX1 will need to be produced in the forthcoming year?
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According to a decision tree forecasting, there are three possible outcomes of a project requiring £10,000 capital investment. They are (along with probability of occurring): £20,000 in revenue (45%), £35,000 (15%), £10,000 (30%) and -£6,000 (10%). However, choosing another project (2) requiring the same investment would give us £12,000 and choosing project 3 would give us a 90% chance of generating revenues of £15,000 but a 5% chance of revenues of £0. Project 4 is wildly ambitious and boasts an unlikely (5% chance) of generating revenues of £100,000. There is a 10% probability of negative revenues. Which is the risk averse investor more likely to take?

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