Most Recent CIMAPRO19-P01-1 Exam Questions & Answers

Prepare for the CIMA P1 Management Accounting exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.

QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the CIMAPRO19-P01-1 exam and achieve success.

The questions for CIMAPRO19-P01-1 were last updated on Nov 19, 2024.

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Question No. 1

A company makes and sells three products A, B and C. The products are sold in the ratio of A:B:C = 1:1:4.

Monthly fixed costs are $150,000. Product details are shown below:

What sales value of product C is required to achieve a target profit of $72,000 next month?

Give your answer to the nearest whole $ (in '000s).

A270000

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Correct Answer: A

Question No. 2

A company makes a product using two materials, X and Y.

The standard materials required for one unit of the product are:

What is the materials yield variance?

Give your answer as a whole number.

A$340

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Correct Answer: A

Question No. 3

MBB is considering the costs to be incurred in respect of a special order.

The order would require 625 kg of Material K.

This is a material that is readily available and regularly used by the organization in its other products.

There are 265 kg of Material K in inventory which cost $1,590 when it was purchased.

The current market price is $6.48 per kg.

Material K is normally used to make Product X. Each unit of Material X requires 3 kg of Material K, and if Material K is costed at $6 per kg, each unit of Product X yields a contribution of $30.

The relevant cost of Material K to be included in the costing of the special order is:

A$3,990

B$4,050

C$3,923

D$6,250

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Correct Answer: B

Question No. 4

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.

Discuss the usefulness of the planning and operational variances calculated for TP's management.

Select ALL the TRUE statements.

AThe use of planning and operational variances will enable TP's management to draw a distinction between variances caused by factors extraneous to the business and planning errors (planning variances) and variances caused by factors that are within the control of management (operational variances).

BThe purchasing manager's performance can't be compared with the adjusted standards that reflect the conditions the manager actually operated under during the reporting period.

CIf planning and operational variances are not distinguished, there is potential for dysfunctional behavior especially where the manager has been operating efficiently and performance is being judged by factors outside the manager's control. In the case of TP it became evident during the period that the prevailing market prices for materials were significantly less than those set during the budget process.

DWhere a revision of standards is required due to environmental changes that were not foreseeable at the time the budget was prepared, the planning variances are controllable.

EStandards that failed to anticipate known market trends when they were set will reflect faulty standard setting.

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Correct Answer: A, C, E

Question No. 5

A company is bidding to win a special contract.

Which of the following is NOT a relevant cost to the company of undertaking the contract?

AThe purchase cost of direct materials not currently in inventory.

BThe cost of hiring a machine which will be hired if the contract is won.

CThe cost of a training course for staff which will be undertaken if the contract is won.

DThe depreciation charge on the tools which will be used during the contract.

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Correct Answer: D

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