CIMA CIMA-P1 Online Practice Questions and Exam Preparation

CIMA CIMA-P1 Online Questions & Answers

• Question 251:

  The cost card for one unit of Product G is as follows:

  

  The opening and closing inventories of Product G for month 5 are budgeted to be 10 units and 60 units respectively. Profit for month 5 using absorption costing is budgeted to be $15,000.

  What is the budgeted profit for month 5 using throughput costing?

  A. $9,800
  B. $12,800
  C. $17,200
  D. $20,200
  A. $9,800

• Question 252:

  A company manufactures a machine. The machine is made from two types of raw material and is assembled in a factory using skilled labour. The engine for the machine is purchased from an outside supplier. The following costs relate to the manufacture of one machine:

  

  What is the finished goods inventory valuation for one machine using throughput costing?

  A. $24.00
  B. $38.00
  C. $6.00
  D. $48.00
  A. $24.00

• Question 253:

  Sales volumes reported for the latest period are used by managers as the basis to forecast sales for the forthcoming period. The forecasts are compared with the budgeted sales and plans are adjusted to ensure that the budgeted sales are achieved.

  This is an example of:

  A. Incremental budgeting
  B. Flexed budgets
  C. Feedforward control
  D. Feedback control
  C. Feedforward control

• Question 254:

  DRAG DROP

  For a company that does not have any production resource limitations, what would be the correct sequence for budget preparation?

  Select and Place:

  

  

• Question 255:

  A manufacturing company has fixed production overhead costs, direct material costs and direct labour costs. The number of units of closing finished goods inventory is lower than the opening inventory. Which of the following statements is true?

  A. The profit using marginal costing will be higher than if absorption costing is used.
  B. The profit using marginal costing will be higher than if throughput costing is used.
  C. The profit using absorption costing will be higher than if marginal costing is used.
  D. The profit using absorption costing will be higher than if throughput costing is used.
  A. The profit using marginal costing will be higher than if absorption costing is used.

• Question 256:

  DRAG DROP

  Rank the budgets listed below to show the order in which they should normally be prepared:

  Select and Place:

  

  

• Question 257:

  The budgeted production of product G for the period was 300 units. At the end of the period it was discovered that the standard hourly rate for labour should have been higher than that originally planned. Actual production was 450 units. The labour rate planning variance would be calculated as:

  A. The revised standard cost of 450 units compared with the original standard cost of 450 units
  B. The revised standard cost of 300 units compared with the orginal standard cost of 300 units
  C. The revised standard cost of 450 units compared with the original standard cost of 300 units
  D. The revised standard cost of 300 units compared with the original standard cost of 450 units
  A. The revised standard cost of 450 units compared with the original standard cost of 450 units

• Question 258:

  Which costing method, used in just-in-time (JIT) production systems, attaches cost directly to output rather than following the flow of product through the production process?

  A. Backflush costing
  B. Absorption costing
  C. Marginal costing
  D. Process costing
  A. Backflush costing

• Question 259:

  CORRECT TEXT

  JKI is planning a golfing holiday for a group of wealthy lawyers.

  The lawyers will fly to the local airport at their own expense. JKI will then pay for transport, accommodation and the use of the golf course (green fees).

  JKI's costings are as follows, based on 28 participants:

  

  JKI received 46 applications from potential participants.

  What would the profit be if JKI accepted all of these bookings?

  Give your answer to the nearest whole number.

  $95800

• Question 260:

  CORRECT TEXT

  The inventory level of Product Y has reduced by 40 units over a single period. The cost card for Product Y is as follows:

  

  The profit for Product Y using marginal costing is $26,000.

  If the company used absorption costing, what would the profit for Product Y be?

  Give your answer to the nearest whole $.

  $24600