Free CIMA P1 Practice Exam with Questions & Answers

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.

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

200 units each of components F, G and H are required next period.

All three components are made by skilled labour of which only 4,000 hours are available.

An external supplier is able to supply any requirements of the components.

No inventories are held.

Data for the three components are as follows:

In order to minimise cost, how many units of component H should be purchased from the external supplier?

A company makes a product using two materials, X and Y.

The standard materials required for one unit of the product are:

What is the materials yield variance?

Give your answer as a whole number.

A manager has not yet used all oh his budget. He is worried that his budget maybe reduced next year if he is not seen to have needed all the funds. He decides to spend the remaining £1,580 on another team building

exercise as well as a catered lunch for his department.

This example falls under which behavioural aspect of budgetary control?

Which THREE of the following are advantages of activity-based costing (ABC), in a multi-product environment, when compared with traditional absorption costing?

XY can choose from four mutually exclusive projects. The projects will each last for one year and their net cash inflows will be determined by market conditions. The forecast net cash inflows for each of the possible outcomes are shown below.

If the company applies the maximax criterion the project chosen would be:

Some of the movements in a time series follow a pattern over time.

Which type of movement does NOT follow a pattern over time?

The following information is available regarding a company's two products for last period.

What is the favourable sales quantity profit variance for last period?

Give your answer to the nearest whole $.

A company sells two products, X and Y, which are always sold in the same ratio.

No inventories are held.

The following budgeted data relate to month 10:

What is the budgeted margin of safety in month 10?

EFG is a small business making raspberry jam to sell at local markets. It has recently been approached by a major supermarket to produce a special order for the supply of lemon curd.

Two of the ingredients required are sugar and preservatives, both of which are in inventory.

The sugar has a historic cost of $4 per kg and a replacement cost of $5. It is in regular use for the production of the raspberry jam.

The factory has switched to organic processes and the preservatives are no longer required.

The historic cost of the preservatives was $3 per kg and the replacement cost is $2.50 per kg.

The preservatives can be re-sold to a local competitor for $1 per kg if they are not used in this order.

Which TWO of the following should be included in determining the relevant cost of the special order?