Free CIMA CIMAPRO19-P01-1 Exam Dumps Questions & Answers

A company produces three products D, E and F. The statement below shows the selling price and product costs per unit for each product, based on a traditional absorption costing system.

Each of the products is produced using Process A which has a maximum capacity of 2,500 hours per period.
If a traditional contribution approach is used, the ranking of products, in order of priority, for the profit maximizing product mix will be:

• A.D, E, F
• B.E, D, F
• C.D, E, F
• D.F, D, F

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?

• A.Project 1
• B.Project 3
• C.Project 4
• D.Project 2

A manufacturing company sells 5 different products.
The company holds no inventories and has a high level of fixed cost.
Place against the statements below the comment "needed" or "not needed" to select ALL of the information required to calcuate the total number of units to break-even.

Correct Answer:

A museum charges a reduced entrance fee for students in full-time education. The budgeted cost per customer is the same regardless of the entrance fee paid.
4,000 customers were budgeted to visit the museum during period 6, with 25% of customers paying the reduced fee.
3,000 customers visited the museum during period 6 and 1,000 of these paid the reduced entrance fee.
Costs were as budgeted but the actual full-priced entrance fee was $2 higher than budgeted.
Which of the following statements is true?

• A.The sales mix variance is zero and the sales quantity variance is favourable.
• B.The sales mix variance is zero and the sales quantity variance is adverse.
• C.The sales mix variance is adverse and the sales quantity variance is adverse.
• D.The sales mix variance is adverse and the sales quantity variance is favourable.

A company's budgeted data for the period are shown in the table below.

There is a stepped increase in fixed overheads of $10,000 when production exceeds 52,000 units.
Actual production for the period was 60,000 units.
What is the flexed budgeted cost for the period?
Give your answer as a whole number (in '000s).