Exam Name: P1 - Management Accounting Question Tutorial
Certification Provider: CIMA
Corresponding Certification: CIMA Certification
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CIMA CIMAPRO15-P01-X1-ENG Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Cost Accounting for Decision and Control | 30% | - Throughput, target and lifecycle costing - Standard costing and variance analysis - Activity-based costing (ABC) - Costing concepts and terminology - Absorption and marginal costing |
| Dealing with Uncertainty in the Short Term | 15% | - Decision trees and decision criteria - Sensitivity and scenario analysis - Risk and uncertainty concepts - Expected value and probability analysis |
| Budgeting and Budgetary Control | 25% | - Purpose and types of budgets - Flexible budgets and budget variances - Budget preparation techniques - Beyond budgeting and modern approaches |
| Short-Term Commercial Decision Making | 30% | - Cost-volume-profit analysis - Limiting factor decisions - Pricing decisions - Relevant costing principles - Make-or-buy and outsourcing decisions |
CIMA P1 - Management Accounting Question Tutorial Sample Questions:
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:
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.
What was the material yield variance?
- A. The material yield variance was $175 000 A
- B. The material yield variance was $155 000 A
- C. The material yield variance was $98 500 A
- D. The material yield variance was $155 500 A
- E. The material yield variance was $175 500 A
Correct Answer: A 🗳️
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:
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.
Prepare a statement which reconciles the flexed budget material cost and the actual material cost. Your statement should include the material price planning variances, and the operational variances including material price, material mix and material yield.
What was the material price planning variance for ingredient A?
- A. The Material price planning variance - Ingredient A was $71 000 F
- B. The Material price planning variance - Ingredient A was $75 000 F
- C. The Material price planning variance - Ingredient A was $72 000 F
- D. The Material price planning variance - Ingredient A was $73 000 F
Correct Answer: C 🗳️
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. $1,780,000
- B. $1,400,000
- C. $1,390,000
- D. $1,300,000
- E. $1,950,000
Correct Answer: D 🗳️
Explanation: Only visible for 2Pass4sure members. You can sign-up / login (it's free).
A company is preparing its annual budget and is estimating the number of units of Product W that it will sell in each quarter of year 2. Past experience has shown that the trend for sales of the product is represented by the following relationship:
Calculate the expected unit sales of Product W for each quarter of year 2, after adjusting for seasonal variations using the multiplicative model.
- A. The sales forecast for year 2 Quarter 4 = 38,100 units
- B. The sales forecast for year 2 Quarter 4 = 35,100 units
- C. The sales forecast for year 2 Quarter 4 = 22,600 units
- D. The sales forecast for year 2 Quarter 4 = 25,100 units
Correct Answer: B 🗳️
Explanation: Only visible for 2Pass4sure members. You can sign-up / login (it's free).
A decision maker that makes decisions using the minimax regret criterion would be classified as:
- A. Risk spreading
- B. Risk seeking
- C. Risk neutral
- D. Risk averse
Correct Answer: D 🗳️
Explanation: Only visible for 2Pass4sure members. You can sign-up / login (it's free).
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