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

A company's initial budget for month 3 includes sales of $100,000, a contribution to sales (C/S) ratio of
40% and fixed costs of $20,000.
If the budgeted sales volume in month 3 is reduced by 5% but contribution per unit, total fixed costs and sales mix are unchanged, which of the following statements, about the change to the budgeted profit or contribution in month 3 is true?

• A.The revised budgeted contribution would be lower by less than 5%.
• B.The revised budgeted profit would be lower by more than 5%.
• C.The revised budgeted profit would be lower by less than 5%.
• D.The revised budgeted contribution would be lower by more than 5%.

You are a trainee management accountant working for a prestigious manufacturing firm. One day you go to a business meeting a business meeting and the managing director is there. They stand up and say that the company is losing too much money through wastage and losses and so they have decided to implement a total quality management system. They go on to say this system will:
1:Allow the company to improve on a consistent and continual basis
2:Allow the company to identify and allocate quality accountability to certain departments
3:Help the company detect error and fraud
Are ALL of these statements correct?

• A.Yes. They ore all correct
• B.No. (3) and (2) are incorrect.
• C.No. (1) and (2) are incorrect.
• D.No. (2) is incorrect No. (1) is incorrect

A flexible budget is a budget that is:

• A.changed in response to changes in costs
• B.changed in response to changes in the level of activity
• C.continuously updated by adding a further accounting period when the earliest accounting period has expired
• D.set prior to the control period and not subsequently changed in response to changes in activity period has expired

D3 makes 2 types of toilets - the Executive (Ex) and the Classic (CI). Direct labour costs $6 per hr and overheads are absorbed on a machine hour basis. The overhead absorption rate for the period is $28 per machine hour. What is the traditional cost per unit for (Ex) and (CI)?

• A.(Ex) 60, (CI) 56
• B.(Ex) 62, (CI) 52
• C.(Ex) 58, (CI) 53
• D.(Ex) 65, (CI) 49
• E.(Ex) 63, (CI) 48

A company sells three products A, B and C in a ratio of 2:2:3.
Each unit of A,B and C earns a contribution of $4.00, $2.00 and $4.00 respectively. Production fixed costs are $69,000 each month and selling fixed costs are $13,000 each month.
The company holds no inventory. The management accountant wants to know the total number of units needed to break-even. However, he is unsure about how to calculate the weighted average contribution per unit or what category of fixed cost to use.
Place the amounts given to complete the table in order to calculate the total number of units to break even.

Correct Answer: