Free CIMAPRO15-P01-X1-ENG Exam braindumps download (CIMAPRO15-P01-X1-ENG exam dumps Free)

QUESTION: 60

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.

Calculate, for the original budget, the budgeted fixed overhead costs, the budgeted variable overhead cost per tray and the budgeted total overheads costs.

The variable cost per tray = $0.75; The fixed cost = $ 490 000
The variable cost per tray = $0.65; The fixed cost = $ 550 000
The variable cost per tray = $0.45; The fixed cost = $ 320 000
The variable cost per tray = $0.85; The fixed cost = $ 530 000

Answer(s): B

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QUESTION: 61

Original budget contribution = $162 000, Flexed budget contribution = $ 178 200,
Actual Contribution $ 201 960
Original budget contribution = $172 000, Flexed budget contribution = $ 148 200,
Actual Contribution $ 221 960
Original budget contribution = $272 000, Flexed budget contribution = $ 248 200,
Actual Contribution $ 321 960
Original budget contribution = $242 000, Flexed budget contribution = $ 148 200,
Actual Contribution $ 121 960

Answer(s): A

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QUESTION: 62

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 fixed budget will provide meaningful control information when actual activity differs from budget and variable costs are significant.
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.
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.
Reporting against a fixed budget tells management nothing about the efficiency of operations.
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.
The fixed budget however provides more insight into actual performance.

Answer(s): C,D,E

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QUESTION: 63

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

Answer(s): D

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QUESTION: 64

Select the benefits to a company of using sensitivity analysis in investment appraisal.

(Select all the true statements.)

Sensitivity analysis enables a company to determine the effect of changes to variables on the planned outcome.
Sensitivity analysis enables a company to assess the risk associated with a project.
Sensitivity analysis enables identification of fixed costs that are of special significance.
Sensitivity analysis enables risk management strategies to be put in place to focus on those variables of special significance.

Answer(s): A,B,D

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Free CIMAPRO15-P01-X1-ENG Exam Braindumps P1 Management Accounting Questions 60–64 (page: 7)

QUESTION: 60

QUESTION: 61

QUESTION: 62

QUESTION: 63

QUESTION: 64

Free CIMAPRO15-P01-X1-ENG Exam Braindumps
P1 Management Accounting Questions 60–64 (page: 7)