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CIMA CIMAPRO15-P01-X1-ENG Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Short-Term Commercial Decision-Making | 30% | - Relevant costing and contribution analysis - Limiting factors and CVP analysis |
| Cost Accounting for Decision and Control | 30% | - Rationale for costing - Costing methods and analysis techniques - Application of costing to decisions |
| Risk and Uncertainty in the Short Term | 15% | - Risk management tools and concepts - Techniques for dealing with uncertainty |
| Budgeting and Budgetary Control | 25% | - Budgetary control processes - Purpose and preparation of budgets |
CIMA P1 - Management Accounting Question Tutorial Sample Questions:
XY can choose from four mutually exclusive projects. The projects will each last for one year and their net cash inflows will be determined by market conditions. The forecast net cash inflows for each of the possible outcomes are shown below.
If the company applies the maximax criterion the project chosen would be:
- A. Project B
- B. Project A
- C. Project D
- D. Project C
Correct Answer: A 🗳️
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JRL manufactures two products from different combinations of the same resources. Unit selling prices and unit cost details for each product are as follows:
The optimal solution in the previous question shows that the shadow prices of skilled labour and direct material A are as follows:
Skilled labour $ Nil
Direct material A $11.70
Explain the relevance of these values to the management of JRL.
What is the additional contribution that can be earned?
- A. Thus the additional contribution that can be earned and therefore the penalty value at which WRX would decide not to supply the major customer order in full is $4, 825
- B. Thus the additional contribution that can be earned and therefore the penalty value at which WRX would decide not to supply the major customer order in full is $4, 570
- C. Thus the additional contribution that can be earned and therefore the penalty value at which WRX would decide not to supply the major customer order in full is $3, 825
- D. Thus the additional contribution that can be earned and therefore the penalty value at which WRX would decide not to supply the major customer order in full is $5, 825
Correct Answer: A 🗳️
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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. $8675
- B. $6390
- C. $7698
- D. $9050
Correct Answer: A 🗳️
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A company's management is considering investing in a project with an expected life of 4 years. It has a positive net present value of $180,000 when cash flows are discounted at 8% per annum. The project's cash flows include a cash outflow of $100,000 for each of the four years. No tax is payable on projects of this type.
The percentage increase in the annual cash outflow that would cause the company's management to reject the project from a financial perspective is, to the nearest 0.1%:
- A. 184.0%
- B. 54.3%
- C. 55,6%
- D. 45.0%
Correct Answer: B 🗳️
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A company sells and services photocopying machines. Its sales department sells the machines and consumables, including ink and paper, and its service department provides an after sales service to its customers. The after sales service includes planned maintenance of the machine and repairs in the event of a machine breakdown. Service department customers are charged an amount per copy that differs depending on the size of the machine.
The company's existing costing system uses a single overhead rate, based on total sales revenue from copy charges, to charge the cost of the Service Department's support activities to each size of machine. The Service Manager has suggested that the copy charge should more accurately reflect the costs involved. The company's accountant has decided to implement an activity-based costing system and has obtained the following information about the support activities of the service department:
Calculate the annual profit per machine for each of the three sizes of machine, using the current basis for charging the costs of support activities to machines.
- A. The profit per machine for the medium machine was: $1376
- B. The profit per machine for the medium machine was: $1250
- C. The profit per machine for the medium machine was: $1276
- D. The profit per machine for the medium machine was: $1350
Correct Answer: C 🗳️
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