Free CIMAPRO19-P01-1 Exam Braindumps
P1 Management Accounting Questions 126–130 (page: 27)

Updated On: 9-Feb-2026

Which of the following statements about relevant costs is correct?

  1. Relevant costs will always be lower than the full costs used in external profit reporting.
  2. Relevant costs will always be higher than the full costs used in external profit reporting.
  3. Relevant costs may not be used in external profit reporting because they do not adhere to the accruals basis of accounting.
  4. Relevant costs must be used in external profit reporting so that reported profits follow

    the pattern of cash flow.

Answer(s): C



Traditional absorption costing is more suitable than activity-based costing when:

  1. overheads are not driven by production volume.
  2. the company has a diverse product range.
  3. production is specific to customer needs.
  4. overheads are small in comparison to direct costs.

Answer(s): D



CORRECT TEXT
A company manufactures a single product. The following budgeted data applies to month
6:



What was the budgeted fixed production overhead for month 6?

Give your answer to the nearest whole $ (in '000s).

  1. $50000
  2. $60000

Answer(s): B



A company's markets are affected by fluctuating exchange rates. It is difficult to forecast more than two or three months ahead.

Which of the following budgeting systems would be most useful in this company's circumstances?

  1. Rolling budgets
  2. Flexed budgets
  3. Activity-based budgets
  4. Zero-based budgets

Answer(s): A



DRAG DROP (Drag & Drop is not supported)

State whether the following costs are relevant or non-relevant in the context of short-term decision making scenarios.

  1. See Explanation section for answer.

Answer(s): A

Explanation:



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