CIMA CIMA-P1 Online Practice Questions and Exam Preparation

CIMA CIMA-P1 Online Questions & Answers

• Question 91:

  CORRECT TEXT

  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.

  $340

• Question 92:

  GH manufactures a product using skilled labour and high quality materials. The company operates a standard costing system and a just-in-time (JIT) purchasing and production system. The standard selling price and variable costs for one unit of the product are as follows:

  

  Prepare a statement that reconciles the budgeted contribution with the actual contribution for October. Your statement should show the variances in as much detail as possible. What was the actual contribution for October?

  A. $ 1,324,000
  B. $ 1,414,000
  C. $ 1,594,000
  D. $ 1,494,000
  E. $ 1,198,000
  B. $ 1,414,000

• Question 93:

  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
  D. $1,300,000

• Question 94:

  A company is basing its budget on predicted sales of one of its products. They have tasked you with forecasting the sales in year 2. The company has found that a fairly accurate prediction can be found when the trend is calculated like so: a = 10,000 b = 2,000 The sales of year 1 were affected by seasonal variation and were as follows: Q1:12,500 Q2:14,200 Q3:15,400 Q4:19,650 You use a multiplicative model and round percentages to the nearest whole percent. Select ALL the correct quarterly forecasts of year 2 from the list.

  A. Year 2 Q1 = 20,800
  B. Year 2 Q2 = 22,220
  C. Year 2 Q3 = 24,960
  D. Year 2 Q4 = 27,340
  A. Year 2 Q1 = 20,800
  B. Year 2 Q2 = 22,220

• Question 95:

  A company produces three products D, E and

  F. The statement below shows the selling price and product costs per unit for each product, based on a traditional absorption costing system.

  

  Each of the products is produced using Process A which has a maximum capacity of 2,500 hours per period.

  If a throughput accounting approach is used, the ranking of products, in order of priority, for the profit maximizing product mix will be:

  A. D, E, F
  B. E, D, F
  C. F, D, E
  D. D, F, E
  C. F, D, E

• Question 96:

  An analysis of past sales data shows that the underlying trend in a company's sales volume can be represented by:

  Y = 50X + 625

  Where Y is the trend sales units for a quarter and X is the quarterly period number.

  The seasonal variation index values have been identified as follows:

  

  The forecast sales volume in units for quarter 4 next year, which is period 14, is:

  A. 1,378
  B. 1,325
  C. 1,329
  D. 1,274
  A. 1,378

• Question 97:

  A company is considering whether to launch a new product. The selling price and costs for each unit of the product are shown in table below:

  

  The fixed overhead cost is based on expected production of 2,000 units.

  The company will only launch the product if it is expected to be profitable.

  To which of the following is the decision to launch the product most sensitive?

  A. Sales volume
  B. Selling price
  C. Fixed overhead cost
  D. Material cost
  B. Selling price

• Question 98:

  CORRECT TEXT

  A project has an expected value of $165,250.

  The estimates of cash inflows and their probabilities are:

  

  What is the missing cash inflow? Give your answer as a whole number.

  $192500

• Question 99:

  A company has budgeted to produce 5,000 units of Product B per month. The opening and closing inventories of Product B for next month are budgeted to be 400 units and 900 units respectively. The budgeted selling price and variable production costs per unit for Product B are as follows:

  

  Total budgeted fixed production overheads are $29,500 per month. The company absorbs fixed production overheads on the basis of the budgeted number of units produced. The budgeted profit for Product B for next month, using absorption

  costing, is $20,700.

  Prepare a marginal costing statement which shows the budgeted profit for Product B for next month.

  What was the difference between the profit calculation using marginal costing and the profit calculation using absorption costing?

  A. $2870
  B. $3010
  C. $2950
  D. $3610
  E. $2750
  C. $2950

• Question 100:

  Which of the following is a non-financial performance indicator?

  A. Contribution margin ratio
  B. Machine downtime hours
  C. Return on investment
  D. Gross profit margin
  B. Machine downtime hours