Cisco
CompTIA
ISC
EC-Council
EXIN
Fortinet
ITIL
Juniper
Microsoft
VMware
Avaya
SAP
Google
NVIDIA
Salesforce
Amazon
Palo Alto Networks
ISC2
Splunk
ServiceNow
All Vendors
  2. Home
  3. Exams
  4. CIMA
  5. CIMAPRO19-P01-1

CIMA CIMAPRO19-P01-1 Exam
P1 Management Accounting (Page 7 )

Updated On: 1-Feb-2026
Page 7 of 53
PDF with 260 Questions

Which of the following managers is most likely to be responsible for an favourable labour efficiency variance?

  1. Production Manager
  2. Purchasing Manager
  3. Human Resources Manager
  4. Marketing Manager

Answer(s): A



Which THREE of the following statements relating to fixed overhead variances are correct?

  1. The total fixed overhead cost variance in an absorption costing system is the amount of fixed overhead that has been under- or over-absorbed in the period.
  2. The total fixed overhead variance is made up of the fixed overhead expenditure variance, the fixed overhead efficiency variance and the fixed overhead capacity variance.
  3. The fixed overhead volume variance can be split into the fixed overhead efficiency variance and the fixed overhead capacity variance.
  4. The total fixed overhead cost variance in an absorption costing system is the difference between budgeted fixed overhead and actual fixed overhead incurred.
  5. In a marginal costing operating statement reconciling budgeted contribution to actual profit only the fixed overhead expenditure variance and the fixed overhead volume variance are shown.

Answer(s): A,B,C



CORRECT TEXT
JKI is planning a golfing holiday for a group of wealthy lawyers.

The lawyers will fly to the local airport at their own expense. JKI will then pay for transport, accommodation and the use of the golf course (green fees).

JKI's costings are as follows, based on 28 participants:



JKI received 46 applications from potential participants.

What would the profit be if JKI accepted all of these bookings?

Give your answer to the nearest whole number.

  1. $95800
  2. $98000

Answer(s): A



A university is trying to decide whether or not to advertise a new post-graduate degree programme. The number of students starting the programme is dependent on economic conditions. If conditions are poor, it is expected that the programme will attract 40 students without advertising. There is a 60% chance that economic conditions will be poor. If economic conditions are good it is expected that the programme will attract only 20 students without advertising. There is a 40% chance that economic conditions will be good.

If the programme is advertised and economic conditions are poor, there is a 65% chance that the advertising will stimulate further demand and student numbers will increase to 50. If economic conditions are good, there is a 25% chance the advertising will stimulate further demand and numbers will increase to 25 students.

The profit expected, before deducting the cost of advertising, at different levels of student numbers are as follows:



The cost of advertising the programme will be $15,000.

Required:

Demonstrate, using a decision tree, whether the programme should be advertised.

  1. Yes, the programme should be advertised as the profit will be $82 000
  2. Yes, the programme should be advertised as the profit will be $92 000
  3. No, the programme should not be advertised as there will be a loss $82 000
  4. No, the programme should not be advertised as there will be a loss $92 000

Answer(s): A



RT produces two products from different quantities of the same resources using a just-in- time (JIT) production system. The selling price and resource requirements of each of the products are shown below:



Market research shows that the maximum demand for products R and T during June 2010 is 500 units and 800 units respectively. This does not include an order that RT has agreed with a commercial customer for the supply of 250 units of R and 350 units of T at selling prices of $100 and $135 per unit respectively. Although the customer will accept part of the order, failure by RT to deliver the order in full by the end of June will cause RT to incur a $10,000 financial penalty. At a recent meeting of the purchasing and production managers to discuss the production plans of RT for June, the following resource restrictions for June were identified:

Direct labour hours 7,500 hours

Material A 8,500 kgs

Material B 3,000 litres

Machine hours 7,500 hours

Assuming that RT completes the order with the commercial customer, prepare calculations to show, from a financial perspective, the optimum production plan for June 2010 and the contribution that would result from adopting this plan.

The optimum production plan will be:

  1. Contract: R = 250, T = 360 and Market: R = 500 T = 710
  2. Contract: R = 250, T = 360 and Market: R = 600 T = 710
  3. Contract: R = 250, T = 360 and Market: R = 650 T = 710
  4. Contract: R = 250, T = 360 and Market: R = 500 T = 700
  5. Contract: R = 250, T = 360 and Market: R = 660 T = 720

Answer(s): D



Viewing page 7 of 53
Viewing questions 31 - 35 out of 260 questions



Post your Comments and Discuss CIMA CIMAPRO19-P01-1 exam prep with other Community members:

Join the CIMAPRO19-P01-1 Discussion