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

CIMA P1 - Management Accounting Question Tutorial Sample Questions:

1. 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 price planning variance for ingredient B?

A) The material price planning variance - Ingredient B was $54 000 F
B) The material price planning variance - Ingredient B was $59 000 F
C) The material price planning variance - Ingredient B was $57 000 F
D) The material price planning variance - Ingredient B was $64 000 F

2. 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 475 units of E and 770 units of R.
B) The solution (from the graph0 is to produce 495 units of E and 470 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 375 units of E and 750 units of R.
F) The solution (from the graph0 is to produce 495 units of E and 670 units of R.

3. CH is a building supplies company that sells products to trade and private customers.
Budget data for each of the six months to March are given below:

80% of the value of credit sales is received in the month after sale, 10% two months after sale and 8% three months after sale. The balance is written off as a bad debt.
75% of the value of credit purchases is paid in the month after purchase and the remaining 25% is paid two months after purchase.
All other operating costs are paid in the month they are incurred.
CH has placed an order for four new forklift trucks that will cost $25,000 each. The scheduled payment date is in February.
The cash balance at 1 January is estimated to be $15,000.
Prepare a cash budget for each of the THREE months of January, February and March.
Select All the correct answers.

A) The total receipts in January will be $245 000
B) Total payments in March will be $323 000
C) The total receipts in January will be $320 000
D) The total payments in February will be $405 000

4. JRL manufactures two products from different combinations of the same resources. Unit selling prices and unit cost details for each product are as follows:

Identify, using graphical linear programming, the weekly production schedule for products J and L that will maximize the profits of JRL during the next four weeks.

A) Optimum plan (including major customer order) is therefore:
W 1, 000 units
R 600 units
X 2,000 units
B) Optimum plan (including major customer order) is therefore:
W 950 units
R 750 units
X 2,300 units
C) Optimum plan (including major customer order) is therefore:
W 900 units
R 650 units
X 2,000 units
D) Optimum plan (including major customer order) is therefore:
W 910 units
R 800 units
X 2,200 units
E) Optimum plan (including major customer order) is therefore:
W 900 units
R 700 units
X 2,100 units

5. 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) $50
C) $45
D) $55

Solutions: