CIMA CIMA-P1 Online Practice Questions and Exam Preparation

CIMA CIMA-P1 Online Questions & Answers

• Question 241:

  A company's markets are affected by fluctuating exchange rates. It is difficult to forecast more than two or three months ahead. Which of the following budgeting systems would be most useful in this company's circumstances?

  A. Rolling budgets
  B. Flexed budgets
  C. Activity-based budgets
  D. Zero-based budgets
  A. Rolling budgets

• Question 242:

  A marketing manager is trying to decide which of four potential selling prices to charge for a new product. The state of the economy is uncertain and may show signs of recession, growth or boom. The manager has prepared a regret matrix showing the regret for each of the possible outcomes depending on the decision made.

  

  If the manager applies the minimax regret criterion to make decisions, which selling price would be chosen?

  A. $40
  B. $45
  C. $50
  D. $55
  B. $45

• Question 243:

  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 $98 500 A
  B. The material yield variance was $175 500 A
  C. The material yield variance was $155 000 A
  D. The material yield variance was $175 000 A
  E. The material yield variance was $155 500 A
  D. The material yield variance was $175 000 A

• Question 244:

  Your company want to know how many units they'd have to sell this season to break even. However, you have some reservations over whether or not breakeven analysis is suitable for the company.

  Which of these assumptions over product range limit the accuracy of break even analysis? Select ALL that apply.

  A. The company only sells one product
  B. The company has a consistent selling ratio across all products
  C. The company sells multiple products
  D. Variable costs remain consistent at any level of production
  E. Fixed costs remain the same regardless of activity
  F. The company has a variable selling ratio across all products
  G. Prices and demand of products will remain steady
  A. The company only sells one product
  B. The company has a consistent selling ratio across all products

• Question 245:

  The definition of a trend is:

  A. a non-recurring fluctuation which could not be predicted.
  B. a medium-term or long-term influence which repeats in cycles.
  C. an underlying long-term movement over time in the values of the data recorded.
  D. a short-term fluctuation due to different circumstances which affect results at different points in time.
  C. an underlying long-term movement over time in the values of the data recorded.

• Question 246:

  DRAG DROP

  Which of the statements about allocation of joint costs to products are true and which are false?

  Select and Place:

  

  

• Question 247:

  Traditional absorption costing is more suitable than activity-based costing when:

  A. overheads are not driven by production volume.
  B. the company has a diverse product range.
  C. production is specific to customer needs.
  D. overheads are small in comparison to direct costs.
  D. overheads are small in comparison to direct costs.

• Question 248:

  CORRECT TEXT

  GP is launching a new product. The annual forecast costs are as follows:

  

  What is the expected value of the total costs?

  Give your answer to the nearest whole $.

  $36935

• Question 249:

  The fixed production overhead volume variance is:

  A. $10,500 F
  B. $3,500 A
  C. $10,500 A
  D. $7,000 A
  C. $10,500 A

• Question 250:

  200 units each of components F, G and H are required next period.

  All three components are made by skilled labour of which only 4,000 hours are available.

  An external supplier is able to supply any requirements of the components.

  No inventories are held.

  Data for the three components are as follows:

  

  In order to minimise cost, how many units of component H should be purchased from the external supplier?

  A. None
  B. 80
  C. 120
  D. 200
  B. 80