CIMA CIMAPRO15-P01-X1-ENG Actual Tests : P1 - Management Accounting Question Tutorial

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CIMA CIMAPRO15-P01-X1-ENG Exam Syllabus Topics:

CIMA P1 - Management Accounting Question Tutorial Sample Questions:

1. THS produces two products from different combinations of the same resources. Details of the products are shown below:

Identify, using graphical linear programming, the optimal production plan for products E and R to maximize THS's profit in the month.

A) The solution (from the graph0 is to produce 495 units of E and 470 units of R.
B) The solution (from the graph0 is to produce 375 units of E and 750 units of R.
C) The solution (from the graph0 is to produce 375 units of E and 870 units of R.
D) The solution (from the graph0 is to produce 675 units of E and 470 units of R.
E) The solution (from the graph0 is to produce 475 units of E and 770 units of R.
F) The solution (from the graph0 is to produce 495 units of E and 670 units of R.

2. A company is preparing its annual budget and is estimating the number of units of Product W that it will sell in each quarter of year 2. Past experience has shown that the trend for sales of the product is represented by the following relationship:

Calculate the expected unit sales of Product W for each quarter of year 2, after adjusting for seasonal variations using the multiplicative model.

A) The sales forecast for year 2 Quarter 4 = 22,600 units
B) The sales forecast for year 2 Quarter 4 = 25,100 units
C) The sales forecast for year 2 Quarter 4 = 35,100 units
D) The sales forecast for year 2 Quarter 4 = 38,100 units

3. A company uses an activity based costing system. The company manufactures three products, details of which are given below:

A) $0.27
B) $0.23
C) $0.31
D) $0.35

4.
Calculate the sensitivity of the investment decision to a change in the annual fixed costs.
By how much should the present value of the fixed cost increase, before this project is not viable?

A) $6390
B) $7698
C) $9050
D) $8675

5. Explain the advantages of management participation in budget setting and the potential problems that may arise in the use of the resulting budget as a control mechanism.
Select all the correct answers.

A) A purposes of budgeting is to act as a control mechanism, with actual results being compared against budget.
B) The participation of managers in the budget setting process has several advantages. Managers are more likely to be motivated to achieve the target if they have participated in setting process has several advantages. managers are more likely to be motivated to achieve the target if they have participated in setting the target.
C) Managers will not 'empire build' because they don't believe that the size of their budget reflects their importance within the organization.
D) Participation in budget setting can cause problems; in particular, managers may attempt to negotiate budgets that they feel are easy to achieve which gives rise to "budget padding" or budgetary slack.
E) Another purpose of a budget is to set targets to motivate managers and optimize their performance.
F) Participation in budget setting can reduce the information asymmetry gap that can arise when targets are imposed by senior management. Imposed targets are likely to make managers feel demotivated and alienated and result in poor performance.

Solutions: