P1 CIMA Management Accounting exact Exam Questions

Management Accounting

Last Update 2 hours ago Total Questions : 260

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You'll find that our P1 exam questions frequently feature detailed scenarios and practical problem-solving exercises that directly mirror industry challenges. Engaging with these P1 sample sets allows you to effectively manage your time and pace yourself, giving you the ability to finish any Management Accounting practice test comfortably within the allotted time.

Question # 4

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

Question # 5

A company manufactures three products X, Y and Z.

The company is currently operating at full capacity and is unable to meet the full sales demand for Product Z.

According to the latest management accounts, Product Y is loss making, whilst X and Z both make strong positive contributions.

Which of the following is relevant when making a decision on whether or not to discontinue the manufacture of Product Y?

The salary of the sales manager who deals with all three products.

The rent and rates of the factory used to make the three products.

The contribution from additional sales of Product Z.

The cost of market research carried out last month to establish if sales of Product Y are likely to improve.

Question # 6

Assume that you have made profit calculations based on standard profit calculation methods and activity based costing methods.

In which ways will this information be beneficial to the management team?

Select all the true statements.

Under an activity based costing system the various support activities that are involved in the process of making products or providing services are identified.

The cost drivers that cause a change to the cost of activities are also identified and used as the basis to attach activity costs to a particular product or service.

Through the tracing of costs to product in this way ABC establishes less accurate costs for the product or service.

The identification of cost drivers provides information to management to enable them to take actions to improve the overall profitability of the company.

Operational analysis will provide information to management on how costs can be incurred and managed.

Question # 7

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?

$7698

$6390

$9050

$8675

Question # 8

For the forthcoming period, the number of units of product L produced must be no more than four times the number of units of product M produced.

The equation to represent this constraint in a linear programming exercise is:

L < 4M

4L < M

L > 4M

4L > M

Question # 9

Which of the following managers is most likely to be responsible for an favourable labour efficiency variance?

Production Manager

Purchasing Manager

Human Resources Manager

Marketing Manager

Question # 10

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: