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CIMA Updated P1 Exam Questions and Answers by cassius

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CIMA P1 Exam Overview :

Exam Name: Management Accounting
Exam Code: P1 Dumps
Vendor: CIMA Certification: CIMA Operational
Questions: 260 Q&A's Shared By: cassius
Question 36

For the forthcoming period, the number of units of product L produced must be no more than four times the number of units of product M produced.

The equation to represent this constraint in a linear programming exercise is:

Options:

A.

L < 4M

B.

4L < M

C.

L > 4M

D.

4L > M

Discussion
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Question 37

A company produces trays of pre-prepared meals that are sold to restaurants and food retailers. Three varieties of meals are sold: economy, premium and deluxe.

Questions 37Questions 37

Calculate, for the original budget, the budgeted fixed overhead costs, the budgeted variable overhead cost per tray and the budgeted total overheads costs.

Options:

A.

Original budget contribution = $162 000, Flexed budget contribution = $ 178 200, Actual Contribution $ 201 960

B.

Original budget contribution = $172 000, Flexed budget contribution = $ 148 200, Actual Contribution $ 221 960

C.

Original budget contribution = $272 000, Flexed budget contribution = $ 248 200, Actual Contribution $ 321 960

D.

Original budget contribution = $242 000, Flexed budget contribution = $ 148 200, Actual Contribution $ 121 960

Discussion
Question 38

According to a decision tree forecasting, there are three possible outcomes of a project requiring £10,000 capital investment. They are (along with probability of occurring): £20,000 in revenue (45%), £35,000 (15%),

£10,000 (30%) and -£6,000 (10%).

However, choosing another project (2) requiring the same investment would give us £12,000 and choosing project 3 would give us a 90% chance of generating revenues of £15,000 but a 5% chance of revenues of £0.

Project 4 is wildly ambitious and boasts an unlikely (5% chance) of generating revenues of £100,000. There is a 10% probability of negative revenues.

Which is the risk averse investor more likely to take?

Project 1

Project 2

Project 3

Project 4

Options:

Discussion
Question 39

A company makes Product A and Product B. The production process for both products uses one type of material, one type of labour, and utilises one machine. All three of these resources will be limited in November. The company has performed a linear programming model and the constraints and optimal solution, to maximise contribution, are as follows:

Constraints:

Questions 39

For November, which of the above constraints are binding, and which are non-binding?

Questions 39

Options:

Discussion
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