This page was exported from Valid Premium Exam [ http://premium.validexam.com ] Export date:Mon Feb 24 9:28:11 2025 / +0000 GMT ___________________________________________________ Title: Valid P1 Exam Q&A PDF P1 Dump is Ready (Updated 258 Questions) [Q26-Q41] --------------------------------------------------- Valid P1 Exam Q&A PDF P1 Dump is Ready (Updated 258 Questions) Exam Questions and Answers for  P1 Study Guide QUESTION 26A company manufactures two products and has two production constraints.When the graphical approach to linear programming is used, the axes of the graph will show:  the two constraints restricting production  the two objectives of the company  the two products manufactured  the contribution generated by the two products QUESTION 27FGH used to manufacture components that required raw material Q.Currently there are 80 kg of material Q in inventory.The company has no use for the material in the foreseeable future and intends to sell it for scrap.A potential new customer has asked for a price for a large order.This order would require 100 kg of material Q.The company management has decided to quote a price for this work on a relevant cost basis.Details of costs for material Q are as follows:What would be the relevant cost of Material Q to use in this order?  $230  $198  $110  $46 QUESTION 28The term ‘budgetary slack’ refers to the:  Lead time between the preparation of the functional budgets and the approval of the master budget by senior management  Difference between the budgeted output and the actual output  Difference between budgeted capacity utilization and full capacity  Intentional over estimation of costs and/or under estimation of revenue in a budget QUESTION 29A manufacturing company produces and sells a single product.It is preparing its budget for the next period and expects to breakeven.Budgeted fixed costs are the same as budgeted variable costs and the budgeted contribution to sales ratio is 50%.If all budgeted costs decreased by 10%, which of the following statements is true?  Total contribution would increase by less than the increase in total profit.  Total profit would increase by the same amount as the increase in total contribution.  The contribution to sales margin would increase by more than five percentage points.  The contribution to sales margin would increase by less than five percentage points. QUESTION 30Where sales volume is the principal budget factor, which of the following is the correct order in which budgets have to be prepared?  Sales budget, production budget, material usage budget, material purchases budget  Sales budget, production budget, materials purchases budget, material usage budget  Production budget, sales budget, material usage budget, material purchases budget  Prodcution budget, material usage budget, material purchases budget, sales budget QUESTION 31A company has identified the trend in its sales figures through the regression equation Y = 65.9 + 3.86X, where Y is the sales revenue in thousands of dollars and X is the month number. The average seasonal variation for October is 87% Calculate the forecast sales revenue for October of Year 6.Give your answer to the nearest $000. 292000QUESTION 32A company is choosing between three projects, Project P, Project Q and Project R using minimax regret as the criterion for the decision. The outcome from each project is dependent on future economic growth. If this is strong, returns will be P $5,000, Q $6,500 and R $7,200. If it is weak, returns will be P$3,500, Q $4,800 and R $4,200.Place the correct figures into the table to show the maximum regret for each project. QUESTION 33A company has to choose between three mutually exclusive projects. Market research has shown that customers could react to the projects in three different ways depending on their preferences. There is a30% chance that customers will exhibit preferences 1, a 20% chance they will exhibit preferences 2 and a 50% chance they will exhibit preferences 3. The company uses expected value to make this type of decision.The net present value of each of the possible outcomes is as follows:A market research company believes it can provide perfect information about the preferences of customers in this market.What is the maximum amount that should be paid for the information from the market research company?  $145 000  $140 000  $125 000  $135 000 QUESTION 34A company has budgeted to produce 5,000 units of Product B per month. The opening and closing inventories of Product B for next month are budgeted to be 400 units and 900 units respectively. The budgeted selling price and variable production costs per unit for Product B are as follows:Total budgeted fixed production overheads are $29,500 per month.The company absorbs fixed production overheads on the basis of the budgeted number of units produced. The budgeted profit for Product B for next month, using absorption costing, is $20,700.Prepare a marginal costing statement which shows the budgeted profit for Product B for next month.What was the marginal costing profit for the next month?  $17 750  $18 600  $17 890  $18 750 QUESTION 35A company manufactures a single product and absorbs fixed production overheads at a predetermined rate based on budgeted expenditure and budgeted units.Which TWO of the following would definitely lead to an over absorption of fixed production overheads?  The actual number of units produced are greater than budgeted and the actual fixed production overhead expenditure is as budgeted.  The actual number of units produced are less than budgeted and the actual fixed production overhead expenditure is higher than budgeted.  Actual number of units produced are greater than actual units sold and the actual fixed production overhead expenditure is as budgeted.  Actual fixed production overhead expenditure is higher than budgeted and production units are as budgeted.  Actual fixed production overhead expenditure is less than budgeted and production units are as budgeted. QUESTION 36Which of the following statements about expected value is NOT correct?  It assumes that the decision is repeated a very large number of times.  It draws management attention to the possibility of very high or very low outcomes.  It is the weighted average outcome based on the probability of each outcome.  It represents the distribution of possible outcomes by a single figure. QUESTION 37Which one of the following would NOT be included in a decision to close a division of an organization?  Head office overheads absorbed on the basis of the number of units produced  Sale of unwanted non-current assets  Redundancy pay for employees of the division  Fixed costs directly attributable to the division QUESTION 38The standard production cost of making a product is as follows:What is the fixed production overhead capacity variance?  $9,000F  $6,000F  $3,000F  $6,000A QUESTION 39Rank the budgets listed below to show the order in which they should normally be prepared: QUESTION 40‘Public sector organizations are often judged by their economy, efficiency and effectiveness.Consequently, they should use an approach to budgeting other than incremental budgeting.’ Required:Explain ONE advantage and TWO disadvantages of public sector organizations using incremental budgeting.Select all true statements.  An incremental; approach is not as easy and fast to implement than other forms of budgeting approaches e.g. zero based budgeting.  Public sector organizations tend to be fairly complex and in many cases outputs cannot be measured in monetary terms therefore the link between inputs and outputs is difficult to establish. An incremental approach can therefore provide a cost effective approach to budgeting.  Under an incremental approach to budgeting, existing operations and the current budgeted allowance for these existing activities are taken as the base level for preparing the budget.  The main advantage of incremental budgeting is that the cost of past activities becomes fixed and any inefficiencies or wastage is perpetuated.  The incremental approach means that budget holders in public sector organizations will be encouraged to use up this year’s budget will be as high as possible.  The incremental approach encourages managers in public sector organizations to look at the efficiency and effectiveness of activities undertaken. QUESTION 41What type of budget is prepared on an annual basis taking current year operating results and adjusting them for expected growth and inflation?  Rolling budget  Incremental budget  Flexed budget  Zero-based budget  Loading … Understanding function and technical aspects of Analyse performance using financial and nonfinancial information The following will be discussed in CIMA P1 exam dumps: Identify appropriate KPIs for different functions of the organisationIdentify information that can enable managers to review performanceInterpret variances to review functional and organisational performancePrepare performance reports for use by different functions and for different purposes in appropriate formats and mediaExplain company performance using KPIs CIMA P1 Exam Syllabus Topics: TopicDetailsTopic 1Calculate revenue and cost estimates using quantitative analyses Calculate and interpret overall flexed budget variancesTopic 2Understand relevant cash flows and non-financial factors and how it affects make or buy decisions Understand the strategic implications of short-term decision-makingTopic 3Understand the impact of individuals' risk attitudes on decision-making in the short term Understand the difference between direct costs and indirect costsTopic 4Understand how budgets can help energize and motive individuals and teams Recognise how management accountants help make tactical business decisionsTopic 5Determine the activity that causes the change in cost Understand the difference between variable costs and fixed costsTopic 6Understand relevant cash flows and their use in pricing decisions Calculate the costs for products or services using activity-based costingTopic 7Calculate the breakeven point and output level required to meet income targets Understand costing and the different reasons for calculating costsTopic 8Determine causality in cost function estimates and impact on budgets Identify inventory costs and period costs Below is the CIMA Operational CIMA P1 Accounting Number of questions: 60Language: EnglishFormat: Multiple choices, multiple answersLength of Examination: 90 minutesPassing score: 70%   Certification dumps - CIMA Operational P1 guides - 100% valid: https://www.validexam.com/P1-latest-dumps.html --------------------------------------------------- Images: https://premium.validexam.com/wp-content/plugins/watu/loading.gif https://premium.validexam.com/wp-content/plugins/watu/loading.gif --------------------------------------------------- --------------------------------------------------- Post date: 2022-09-02 12:46:09 Post date GMT: 2022-09-02 12:46:09 Post modified date: 2022-09-02 12:46:09 Post modified date GMT: 2022-09-02 12:46:09