Free CIMAPRO19-P01-1 Exam Braindumps
P1 Management Accounting Questions 111–115 (page: 24)

CH is a building supplies company that sells products to trade and private customers.

Budget data for each of the six months to March are given below:



80% of the value of credit sales is received in the month after sale, 10% two months after sale and 8% three months after sale. The balance is written off as a bad debt.

75% of the value of credit purchases is paid in the month after purchase and the remaining 25% is paid two months after purchase.

All other operating costs are paid in the month they are incurred.

CH has placed an order for four new forklift trucks that will cost $25,000 each. The scheduled payment date is in February.

The cash balance at 1 January is estimated to be $15,000.

Prepare a cash budget for each of the THREE months of January, February and March.

Select All the correct answers.

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 marketing manager is trying to decide which of four potential selling prices to charge for a new product. The state of the economy is uncertain and may show signs of recession, growth or boom. The manager has prepared a regret matrix showing the regret for each of the possible outcomes depending on the decision made.



If the manager applies the minimax regret criterion to make decisions, which selling price would be chosen?

Which ONE of the following describes full cost-plus pricing?

CORRECT TEXT
A company has only 10,100 hours of skilled labour available next period.

Data for its three products for next period are as follows.



At least 500 units of each product must be sold each period.

No inventories are held.

How many units of Product X should be manufactured next period in order to maximise profit?