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CIMA CIMAPRO15-P01-X1-ENG Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Cost Accounting for Decision and Control | 30% | - Rationale for costing - Costing methods and analysis techniques - Application of costing to decisions |
| Topic 2: Short-Term Commercial Decision-Making | 30% | - Relevant costing and contribution analysis - Limiting factors and CVP analysis |
| Topic 3: Risk and Uncertainty in the Short Term | 15% | - Risk management tools and concepts - Techniques for dealing with uncertainty |
| Topic 4: Budgeting and Budgetary Control | 25% | - Budgetary control processes - Purpose and preparation of budgets |
CIMA P1 - Management Accounting Question Tutorial Sample Questions:
1. The term 'budgetary slack' refers to the:
A) Lead time between the preparation of the functional budgets and the approval of the master budget by senior management
B) Intentional over estimation of costs and/or under estimation of revenue in a budget
C) Difference between the budgeted output and the actual output
D) Difference between budgeted capacity utilization and full capacity
2. 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 900 units
R 650 units
X 2,000 units
B) Optimum plan (including major customer order) is therefore:
W 910 units
R 800 units
X 2,200 units
C) Optimum plan (including major customer order) is therefore:
W 900 units
R 700 units
X 2,100 units
D) Optimum plan (including major customer order) is therefore:
W 950 units
R 750 units
X 2,300 units
E) Optimum plan (including major customer order) is therefore:
W 1, 000 units
R 600 units
X 2,000 units
3. A company produces three products D, E and F. The statement below shows the selling price and product costs per unit for each product, based on a traditional absorption costing system.
Each of the products is produced using Process A which has a maximum capacity of 2,500 hours per period.
If a traditional contribution approach is used, the ranking of products, in order of priority, for the profit maximizing product mix will be:
A) D, E, F
B) D, E, F
C) E, D, F
D) F, D, F
4. A company has to choose between three mutually exclusive projects. Market research has shown that customers could react to the projects in three different ways depending on their preferences. There is a 30% chance that customers will exhibit preferences 1, a 20% chance they will exhibit preferences 2 and a 50% chance they will exhibit preferences 3. The company uses expected value to make this type of decision.
The net present value of each of the possible outcomes is as follows:
A market research company believes it can provide perfect information about the preferences of customers in this market.
What is the maximum amount that should be paid for the information from the market research company?
A) $135 000
B) $145 000
C) $140 000
D) $125 000
5. Explain why sensitivity analysis is useful when dealing with uncertainty in project appraisal.
Select all the true statements.
A) In project appraisal, in analysis can be made of all the key variables to ascertain by how much each variable would need to change before the net present value (NPV) reaches 100% i.e. the maximum point.
B) Sensitivity analysis enables a company to determine the effect of changes to fixed costs on the planned outcome
C) Sensitivity analysis enables a company to determine the effect of changes to variables on the planned outcome
D) In project appraisal, an analysis can be made if all the key variables to ascertain by how much variable would need to change before the net present value (NPV) reaches zero i.e. the indifference point.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: C,D |



