Cima surepassexam free P1 Questions Attempt by Diya q180 vce pdf

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Exam Name:	Management Accounting
Exam Code:	P1 Dumps
Vendor:	CIMA	Certification:	CIMA Operational
Questions:	260 Q&A's	Shared By:	diya

Question 16

JDM is considering whether to go ahead with the launch of a new product. Profit from the new product is dependent on the level of demand.

The following table shows the estimated profits and their respective probabilities at different levels of demand.

The company could still cancel the launch of the product but would incur a cost of $7,000.

Questions 16

What is the maximum amount that the company should pay for perfect information about demand for the product?

Options:

$13,350

$41,000

$16,500

$37,850

Discussion

Question 17

A manager is deciding which one of four services to provide next period.

The contribution earned by each service will depend on the weather conditions as follows.

Questions 17

Using the maximin criterion, which service will the manager provide?

Options:

Service P

Service Q

Service R

Service S

Discussion

Question 18

Company XPP sells a perishable product that has to be produced each day in anticipation of the following day's sales.

Any product remaining unsold at the end of the day following production is wasted.

The payoff table below shows the daily profit or loss depending on the amounts produced and sold.

Questions 18

A new ordering system is being discussed with customers.

The new system would require customers to order in advance to enable production each day of the following day's sales quantity, thus eliminating waste.

What is the expected increase in average daily profit if the new system is accepted by customers?

Give your answer as a whole number.

Options:

Discussion

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Question 19

The maximum availability of a material is 8,000 kg.

Product A requires 5 kg of this material and Product B requires 7 kg of this material which is in short supply.

The correct constraint to include for the material when formulating the linear programming problem is:

Options:

5B + 7A ≤ 8,000

5A + 7B ≤ 8,000

5A + 7B = 8,000

5B + 7A ≥ 8,000

Discussion