CIMA CIMAPRO19-P01-1 practice materials Questions Answers

Exam Code:
CIMAPRO19-P01-1
Exam Name:
P1 Management Accounting Exam
Last Update:
Jun 01,2026

260 Questions Answers Verified by Experts!


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Page: 1 / 52
Total Questions: 260

Questions & Answers PDF

• Question 1

  

  Petco's material price standard was 8 per kg.When looking over their accounts you calculate that in fact they they purchased 2,000kg at 6 per kg due to an overly abundant harvest that lowered global pet food prices.You have been asked by your manager to analyse these figures and come to a conclusion.With that in mind which of the following statements are correct? Select ALL that apply.

  • The material price operational variance is 4,000
  • The material price planning variance is 4,000
  • Management had control over this variance
  • Management had no control over this variance

  Reveal Answer Answer: B, D Next Question

• Question 2

  

  A completed unit of Product A requires 9 kg of material and 10% of material is wasted in the production process.Material has a standard cost of $5 per kg.Product A also requires 4 labour hours at a standard cost of $10 per labour hour and variable overheads at a standard cost of $2 per labour hourWhat is the standard variable production cost per unit of Product A?

  • $97.50
  • $93
  • $98
  • $50

  Reveal Answer Answer: C Next Question

• Question 3

  

  The budgeted production of product G for the period was 300 units. At the end of the period it was discovered that the standard hourly rate for labour should have been higher than that originally planned. Actual production was 450 units.The labour rate planning variance would be calculated as:

  • The revised standard cost of 450 units compared with the original standard cost of 450 units
  • The revised standard cost of 300 units compared with the orginal standard cost of 300 units
  • The revised standard cost of 450 units compared with the original standard cost of 300 units
  • The revised standard cost of 300 units compared with the original standard cost of 450 units

  Reveal Answer Answer: A Next Question

• Question 4

  

  Which of the following would help to explain a favourable material price variance?

  • A decision to reduce the raw materials inventory during the period led to a reduced level of material purchases.
  • An increase in the quantity of material purchased resulted in unexpected bulk discounts.
  • The material purchased was of a higher quality than standard.
  • Improved processing methods meant that material purchases were lower than standard for the output achieved.

  Reveal Answer Answer: B Next Question

• Question 5

  

  Which of the following explain why standard costing is less appropriate in the contemporary business environment?1. In a continuous improvement environment standard costing can restrict the impetus to remain as cost competitive as rivals.2. Fixed overhead variances are less relevant as fixed costs represent a decreasing proportion of total manufacturing cost.3. In a just-in-time environment there are fewer costs to control.

  • 1 only
  • 1 and 2
  • 2 and 3
  • 1 and 3

  Reveal Answer Answer: A Next Question

• Question 6

  

  Which THREE of the following would be contained within a master budget?

  • Budgeted statement of financial position
  • Budgeted cash flow statement
  • Budgeted income statement
  • Capital expenditure budget
  • Directors' salaries budget
  • Sales budget

  Reveal Answer Answer: A, B, C Next Question

• Question 7

  

  A time series (TS) is made up of two main components i.e. trend (T) and the seasonal variation (SV).Which TWO of the following could be used to find the seasonal component of a trend?

  • SV = TS - T
  • SV = TS / T
  • SV = TS + T
  • SV = T / TS
  • SV = T - TS

  Reveal Answer Answer: A, B Next Question

• Question 8

  

  Which THREE of the following are functional budgets?

  • Human resource budget
  • Sales budget
  • Research and development budget
  • Master budget
  • Cash budget

  Reveal Answer Answer: A, B, C Next Question

• Question 9

  

  The breakeven point in units, in a multiple product context, is calculated using which of the following formulae?

  • Fixed costs / weighted average contribution to sales ratio
  • Fixed costs / weighted average profit per unit
  • Fixed costs / weighted average contribution per unit
  • Fixed costs / weighted average revenue per unit

  Reveal Answer Answer: C Next Question

• Question 10

  

  The 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

  Reveal Answer Answer: D Next Question

Page: 1 / 52
Total Questions: 260

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