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CIMA CIMAPRO15-P01-X1-ENG Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Short-Term Commercial Decision-Making | 30% | - Limiting factors and CVP analysis - Relevant costing and contribution analysis |
| Cost Accounting for Decision and Control | 30% | - Rationale for costing - Costing methods and analysis techniques - Application of costing to decisions |
| Budgeting and Budgetary Control | 25% | - Purpose and preparation of budgets - Budgetary control processes |
| Risk and Uncertainty in the Short Term | 15% | - Techniques for dealing with uncertainty - Risk management tools and concepts |
CIMA P1 - Management Accounting Question Tutorial Sample Questions:
QR uses an activity based budgeting (ABB) system to budget product costs. It manufactures two products, product Q and product R. The budget details for these two products for the forthcoming period are as follows:
The total budgeted cost of setting up the machines is $74,400.
Select TWO potential benefits of using an activity based budgeting system.
- A. Activity based budgeting provides a clear framework for understanding the link between turnover and the level of activity.
- B. Activity based budgeting is useful for the review of quality systems utilization.
- C. Activity based budgeting allows the ranking of activities and the determination of how limited resources should be allocated across competing activities.
- D. Activity based budgeting allows the identification of value added and non-value added activity and ensures that any budget cuts are made to non-value added activities.
Correct Answer: C,D 🗳️
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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. $2950
- B. $3610
- C. $2750
- D. $3010
- E. $2870
Correct Answer: A 🗳️
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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.
Prepare a statement which reconciles the flexed budget material cost and the actual material cost. Your statement should include the material price planning variances, and the operational variances including material price, material mix and material yield.
What was the material price planning variance for ingredient A?
- A. The Material price planning variance - Ingredient A was $75 000 F
- B. The Material price planning variance - Ingredient A was $72 000 F
- C. The Material price planning variance - Ingredient A was $71 000 F
- D. The Material price planning variance - Ingredient A was $73 000 F
Correct Answer: B 🗳️
A decision maker that makes decisions using the minimax regret criterion would be classified as:
- A. Risk seeking
- B. Risk averse
- C. Risk spreading
- D. Risk neutral
Correct Answer: B 🗳️
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The term 'budgetary slack' refers to the:
- A. Difference between budgeted capacity utilization and full capacity
- B. Difference between the budgeted output and the actual output
- C. Intentional over estimation of costs and/or under estimation of revenue in a budget
- D. Lead time between the preparation of the functional budgets and the approval of the master budget by senior management
Correct Answer: C 🗳️
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