CIMA CIMA-P1 Online Practice Questions and Exam Preparation

CIMA CIMA-P1 Online Questions & Answers

• Question 131:

  JRL manufactures two products from different combinations of the same resources. Unit selling prices and unit cost details for each product are as follows:

  

  Identify, using graphical linear programming, the weekly production schedule for products J and L that will maximize the profits of JRL during the next four weeks.

  A. The solution from the graph is to produce 330 units of J and 280 units of L. (A simplex solution shows the true optimum to be 332.333 units of J and 283.333 units of L.)
  B. The solution from the graph is to produce 310 units of J and 280 units of L. (A simplex solution shows the true optimum to be 308.333 units of J and 283.333 units of L.)
  C. The solution from the graph is to produce 330 units of J and 290 units of L. (A simplex solution shows the true optimum to be 332.333 units of J and 293.333 units of L.)
  D. The solution from the graph is to produce 315 units of J and 290 units of L. (A simplex solution shows the true optimum to be 316.333 units of J and 293.333 units of L.)
  E. The solution from the graph is to produce 312 units of J and 295 units of L. (A simplex solution shows the true optimum to be 312.333 units of J and 294.999 units of L.)
  F. The solution from the graph is to produce 317 units of J and 270 units of L. (A simplex solution shows the true optimum to be 316.666 units of J and 269.666 units of L.)
  B. The solution from the graph is to produce 310 units of J and 280 units of L. (A simplex solution shows the true optimum to be 308.333 units of J and 283.333 units of L.)

• Question 132:

  A company uses a standard costing system.

  The company's sales budget for the latest period includes 1,500 units of a product with a selling price of $400 per unit.

  The product has a budgeted contribution to sales ratio of 30%.

  Actual sales for the period were 1,630 units at a selling price of $390 per unit.

  The actual contribution to sales ratio was 28%.

  The sales volume contribution variance for the product for the latest period is:

  A. $15, 600 F
  B. $17, 800 F
  C. $55, 600 F
  D. $32, 900 F
  A. $15, 600 F

• Question 133:

  Company X is deciding which of Projects A, B or C to undertake. The profit earned from each of the projects is dependent on economic conditions. The table below details the profit for each of the possible outcomes and the expected value of each of the projects.

  

  What is the maximum amount that should be paid for perfect information about the economic conditions?

  A. $442.50
  B. $497
  C. $54.50
  D. $57.50
  C. $54.50

• Question 134:

  D3 makes 2 types of toilets - the Executive (Ex) and the Classic (CI). Direct labour costs $6 per hr and overheads are absorbed on a machine hour basis. The overhead absorption rate for the period is $28 per machine hour. What is the traditional cost per unit for (Ex) and (CI)?

  

  A. (Ex) 60, (CI) 56
  B. (Ex) 58, (CI) 53
  C. (Ex) 65, (CI) 49
  D. (Ex) 62, (CI) 52
  E. (Ex) 63, (CI) 48
  C. (Ex) 65, (CI) 49

• Question 135:

  CORRECT TEXT

  Company XPP sells a perishable product that has to be produced each day in anticipation of the following day's sales.

  Any product remaining unsold at the end of the day following production is wasted.

  The payoff table below shows the daily profit or loss depending on the amounts produced and sold.

  

  A new ordering system is being discussed with customers.

  The new system would require customers to order in advance to enable production each day of the following day's sales quantity, thus eliminating waste.

  What is the expected increase in average daily profit if the new system is accepted by customers?

  Give your answer as a whole number.

  $120 per day

• Question 136:

  DRAG DROP

  The following 5 statements apply the principles of either, both or neither absorption costing and marginal costing. Place the option labels against the relevant statements.

  Select and Place:

  

  

• Question 137:

  A museum charges a reduced entrance fee for students in full-time education. The budgeted cost per customer is the same regardless of the entrance fee paid.

  4,000 customers were budgeted to visit the museum during period 6, with 25% of customers paying the reduced fee.

  3,000 customers visited the museum during period 6 and 1,000 of these paid the reduced entrance fee. Costs were as budgeted but the actual full-priced entrance fee was $2 higher than budgeted.

  Which of the following statements is true?

  A. The sales mix variance is adverse and the sales quantity variance is adverse.
  B. The sales mix variance is zero and the sales quantity variance is favourable.
  C. The sales mix variance is adverse and the sales quantity variance is favourable.
  D. The sales mix variance is zero and the sales quantity variance is adverse.
  A. The sales mix variance is adverse and the sales quantity variance is adverse.

• Question 138:

  Explain how probability analysis could be used to assess the risk of the evaluated projects. Select all the true statements.

  A. The company can determine a range of possible outcomes for each of the cash flows in the project, for example, a high, low and medium estimate of each cash flow could be determined.
  B. The net present value (NPV) of the project, if all high, low or medium estimates occurred, can be calculated along with the combined probabilities of their occurrence.
  C. The probabilities can be combined to calculate the expected value of each cash flow element and of the project as a whole
  D. The NPVs of a sample range of possible outcomes and the probability of each NPV can be calculated. If a small sample is taken the distribution of outcomes can be used to calculate the zero activities deviation of the NPVs and the probability of success of the projects.
  A. The company can determine a range of possible outcomes for each of the cash flows in the project, for example, a high, low and medium estimate of each cash flow could be determined.
  B. The net present value (NPV) of the project, if all high, low or medium estimates occurred, can be calculated along with the combined probabilities of their occurrence.
  C. The probabilities can be combined to calculate the expected value of each cash flow element and of the project as a whole

• Question 139:

  CORRECT TEXT

  The following details are available for a company's production overhead costs at different levels of activity:

  

  The company uses the high-low method to calculate its budgeted production overhead costs.

  What is the budget for production overhead costs at an activity level of 8,500 units?

  Give your answer as a whole number.

  $25950

• Question 140:

  Which of the following statements about expected value is NOT correct?

  A. It assumes that the decision is repeated a very large number of times.
  B. It draws management attention to the possibility of very high or very low outcomes.
  C. It is the weighted average outcome based on the probability of each outcome.
  D. It represents the distribution of possible outcomes by a single figure.
  B. It draws management attention to the possibility of very high or very low outcomes.