Pass Your Exam Easily! P1 Real Question Answers Updated on Oct 24, 2022
Actual Questions Answers Pass With Real P1 Exam Dumps
Introduction to CIMA Operational CIMA P1 Accounting
CIMA Operational is the first level of the CIMA Professional qualification. After completing this level you can progress onto the Management level, then complete the Strategic level to become a chartered management accountant. You will need to have completed CIMA Certificate, AAT Professional (Level 4), or have an accountancy or finance degree.
The purpose of the CIMA P1 exam dumps is to spotlight areas of student difficulty, so that remedial measures can be taken before the chances for success are impaired. The CIMA Operational CIMA P1 Accounting is generally given by students who are interested in accounting and finance.
Certification Path for CIMA Operational CIMA P1 Accounting
The CIMA Professional Qualification is suited for anybody who wants to pursue a career in finance focusing on accounting, reporting and business strategy. It is quite different than the conventional courses which concentrate more on accounting, taxation and audit.
CBAs are available for all the papers of the Certificate Level and can be taken at any time of the year, allowing students to progress through CIMA papers at their own pace.
CBA uses computers to deliver questions and receive answers. Objective test questions are used in the assessment (the most common type is multiple choice but there are other formats).
The CBA system has many benefits:
- Upon successfully completing an exam by computer based assessment you will receive a ‘Certificate of Achievement' from the centre. Your student record will automatically be updated by CIMA and an exemption will be awarded for the appropriate paper based subject.
- CBA can be taken at any time of the year, provided that you are a registered CIMA student. However, if you are using CBA to fast track through to the Intermediate level papers you need to be aware of CIMA's registration, exam entry and exemption deadlines.
- You can also re-sit assessments as and when you are ready.
- You will receive individual performance feedback after the assessment, if you are unsuccessful this will help you to identify the areas of the syllabus where you require a better understanding of the topics.
- You will receive your results immediately after you finish the assessment, because the computer can mark it instantly.
- You can sit computer based assessment whenever you wish - you aren't restricted to the two paper based exam sittings per year.
NEW QUESTION 88
Your company want to know how many units they'd have to sell this season to break even. However, you have some reservations over whether or not breakeven analysis is suitable for the company.
Which of these assumptions over product range limit the accuracy of break even analysis? Select ALL that apply.
- A. The company has a consistent selling ratio across all products
- B. The company only sells one product
- C. The company has a variable selling ratio across all products
- D. Prices and demand of products will remain steady
- E. Variable costs remain consistent at any level of production
- F. Fixed costs remain the same regardless of activity
- G. The company sells multiple products
Answer: A,B
NEW QUESTION 89
A company makes and sells three products A, B and C.
The selling prices and costs of the three products, using a traditional absoprtion costing system, are shown in the table below.
The company has undertaken an analysis of overhead costs using activity-based costing (ABC).
The revised overhead costs for products A, B and C are $6, $32 and $55 respectively.
When comparing the figures obtained under the two costing methods, which of the following statements are true?
Select ALL that apply.
- A. Product A shows a profit under ABC but had appeared loss making under traditional absorption costing.
- B. Product B makes a profit under both methods, but the profit is lower using ABC.
- C. Product C is currently overpriced based on cost plus pricing and the selling price should be reduced.
- D. Activity-based costing results in a lower level of overhead costs for the company.
- E. The product that is the most profitable under traditional absorption costing makes a loss under the ABC methodology.
Answer: A,B,E
NEW QUESTION 90
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.
- A. The identification of cost drivers provides information to management to enable them to take actions to improve the overall profitability of the company.
- B. Through the tracing of costs to product in this way ABC establishes less accurate costs for the product or service.
- C. Operational analysis will provide information to management on how costs can be incurred and managed.
- D. Under an activity based costing system the various support activities that are involved in the process of making products or providing services are identified.
- E. 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.
Answer: A,D,E
NEW QUESTION 91
A company has a budgeted contribution to sales (C/S) ratio of 30% and a budgeted operating profit margin of 20%. Budgeted sales were $100,000.
In month 2, actual production and sales volumes and all costs were as budgeted. The actual C/S ratio was 33% .
Which of the following statements, about the company's contribution and operating profit in month 2, is correct?
- A. Actual contribution was exactly 10% higher than budgeted contribution.
- B. Actual operating profit was less than 10% higher than budgeted operating profit.
- C. Actual contribution was less than 10% higher than budgeted contribution.
- D. Actual operating profit was more than 10% higher than budgeted operating profit.
Answer: D
NEW QUESTION 92
A company has identified the trend in its sales figures through the regression equation Y = 65.9 + 3.86X, where Y is the sales revenue in thousands of dollars and X is the month number. The average seasonal variation for October is 87% Calculate the forecast sales revenue for October of Year 6.
Give your answer to the nearest $000.
Answer:
Explanation:
292000
NEW QUESTION 93
Place the correct label against each item to categorise the cost of the item within the quality cost framework.
Answer:
Explanation:
NEW QUESTION 94
Which of the following managers is most likely to be responsible for an favourable labour efficiency variance?
- A. Purchasing Manager
- B. Marketing Manager
- C. Production Manager
- D. Human Resources Manager
Answer: C
NEW QUESTION 95
A company's product has the following standard selling price, variable costs and contribution:
Budgeted sales and production was 20,000 units and actual was 19,500 units.
Due to a market downturn the production and sales budget should have been 10% lower.
What is the operational sales volume contribution variance?
- A. $10,000A
- B. $97,500F
- C. $30,000F
- D. $32,500A
Answer: C
NEW QUESTION 96
A manager has not yet used all oh his budget. He is worried that his budget maybe reduced next year if he is not seen to have needed all the funds. He decides to spend the remaining £1,580 on another team building exercise as well as a catered lunch for his department.
This example falls under which behavioural aspect of budgetary control?
- A. Short term focus
- B. Budget negotiation
- C. Irrational spending
- D. Motivation
Answer: C
NEW QUESTION 97
A company produces trays of pre-prepared meals that are sold to restaurants and food retailers. Three varieties of meals are sold: economy, premium and deluxe.
Discuss the benefits of flexible budgeting for planning and control purposes.
Select all the true statements.
- A. If a flexible budget is prepared then the budget variances calculated will provide a better indication of performance since actual results will be compared against an appropriate benchmark.
- B. If actual sales revenue is compared to a fixed budget it is possible to tell whether a favourable sales variance is due to an increase in units sold or an increase in sales price.
- C. Reporting against a fixed budget tells management nothing about the efficiency of operations.
- D. If sales volumes were well above budget, adverse variable cost variances will probably be reported, against the fixed budget, since more variable costs have to be incurred to support the higher level of activity.
- E. A fixed budget will provide meaningful control information when actual activity differs from budget and variable costs are significant.
- F. The fixed budget however provides more insight into actual performance.
Answer: A,C,D
NEW QUESTION 98
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 yield variance?
- A. The material yield variance was $155 500 A
- B. The material yield variance was $98 500 A
- C. The material yield variance was $175 000 A
- D. The material yield variance was $175 500 A
- E. The material yield variance was $155 000 A
Answer: C
NEW QUESTION 99
N prepares budgets on an annual basis by using the budget from the previous year, and then adjusting it for growth and inflation.
This is an example of:
- A. An incremental budget
- B. A flexed budget
- C. A rolling budget
- D. Zero based budgeting
Answer: A
NEW QUESTION 100
Company X is deciding which of Projects A, B or C to undertake. The profit earned from each of the projects is dependent on economic conditions.
The table below details the profit for each of the possible outcomes and the expected value of each of the projects.
What is the maximum amount that should be paid for perfect information about the economic conditions?
- A. $497
- B. $442.50
- C. $54.50
- D. $57.50
Answer: C
NEW QUESTION 101
Sales volumes reported for the latest period are used by managers as the basis to forecast sales for the forthcoming period. The forecasts are compared with the budgeted sales and plans are adjusted to ensure that the budgeted sales are achieved.
This is an example of:
- A. Incremental budgeting
- B. Feedforward control
- C. Flexed budgets
- D. Feedback control
Answer: B
NEW QUESTION 102
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 $64 000 F
- D. The material price planning variance - Ingredient B was $57 000 F
Answer: A
NEW QUESTION 103
Traditional absorption costing is more suitable than activity-based costing when:
- A. the company has a diverse product range.
- B. overheads are small in comparison to direct costs.
- C. overheads are not driven by production volume.
- D. production is specific to customer needs.
Answer: B
NEW QUESTION 104
Which of the following, regarding costing methods, is true?
- A. A company which has introduced technology to reduce labour costs now incurs a greater proportion of non volume-related support activities. Activity based costing would be more appropriate than traditional absorption costing in this environment.
- B. A company is making short term decisions based on the contribution per unit of its different products.
These decisions are based upon full absorption costing data. - C. In traditional absorption costing, overheads are charged to a product by absorbing them at the cost driver rate for an activity based on their usage of the activity.
- D. A company produces two products which undergo similar processes. The company has very low overhead costs. This company should consider activity based costing rather than traditional absorption costing to ensure that its pricing decisions are more accurate.
Answer: A
NEW QUESTION 105
Which of the following statements about expected value is NOT correct?
- A. It assumes that the decision is repeated a very large number of times.
- B. It represents the distribution of possible outcomes by a single figure.
- C. It is the weighted average outcome based on the probability of each outcome.
- D. It draws management attention to the possibility of very high or very low outcomes.
Answer: D
NEW QUESTION 106
The following extract from a decision tree has been prepared for a decision that is to be made to choose between options P, Q and R.
What is the maximum expected value of profit at decision point Z?
- A. $36 million
- B. $2.4 million
- C. $6 million
- D. $4 million
Answer: D
NEW QUESTION 107
The budgetary control report of XYZ for the latest period is shown below. Variances in brackets are adverse.
What is the sales volume profit variance?
- A. $18,700 favorable
- B. $38,200 adverse
- C. $37,200 adverse
- D. $78,900 adverse
Answer: A
NEW QUESTION 108
JDM is considering whether to go ahead with the launch of a new product. Profit from the new product is dependent on the level of demand.
The following table shows the estimated profits and their respective probabilities at different levels of demand.
The company could still cancel the launch of the product but would incur a cost of $7,000.
What is the maximum amount that the company should pay for perfect information about demand for the product?
- A. $37,850
- B. $16,500
- C. $41,000
- D. $13,350
Answer: D
NEW QUESTION 109
In a manufacturing company, breakeven occurs at which TWO of the following?
- A. When contribution is equal to zero
- B. When fixed costs are equal to contribution
- C. When revenue is equal to contribution
- D. When revenue is equal to fixed costs
- E. When profit is equal to zero
Answer: B,E
NEW QUESTION 110
The marketing director of a company is deciding which of three products to launch into a new market.
The following table of possible outcomes has been prepared.
What is the value of perfect information about market conditions?
Give your answer as a whole number to the nearest $ million.
Answer:
Explanation:
$12 million
NEW QUESTION 111
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