Free CIMAPRO19-P01-1 Exam Braindumps
P1 Management Accounting Questions 101–105 (page: 22)

A decision tree is being evaluated back to a decision point.

There are two alternatives at this point:

1. To abandon the project and generate a return of $435,000;

2. To continue with the project and generate the following possible returns:



What value should be included at the decision point?

DRAG DROP (Drag & Drop is not supported)

Demand for two products, A and B is 1,000 units and 2,000 units respectively. Each unit of Product A requires 8 kg of material and each unit of Product B requires 5 kg of material. The maximum availability of material is 17,200 kg. Contribution per unit of A is $10 and per unit of B is $9.

Place the production volumes of Product A and Product B, that will maximize contribution, in the table.

A musical instrument manufacturing company is considering a new project that will require 1000 kg of wood. They have 700 kgs of wood in stock which was purchased last year for £4 per kg. The wood in stock can be

sold back to the supplier for £5 per kg. The wood in stock will have to be replaced if it is

used. The current purchase price of wood is £8 per kg.

Using this information, what is the relevant cost of wood for the manufacturers decision on this project?

Which of the following, regarding costing methods, is true?

When a moving average is plotted onto a graph, where should the plotted points be located?