Free CIMA P1 Practice Exam with Questions & Answers | Set: 6

The standard production cost of making a product is as follows:

What is the fixed production overhead capacity variance?

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 project has five possible outcomes as follows:

The probability of a contribution of $68,000 is equal to the probability of a contribution of $75,000. Fixed costs are $70,000.

What is the probability of the project making a profit?

A company manufactures a single product and absorbs fixed production overheads at a predetermined rate based on budgeted expenditure and budgeted units.

Which TWO of the following would definitely lead to an over absorption of fixed production overheads?

Which of the following would lead to a favourable variance?

When preparing data for a short term decision, which THREE of the following are relevant costs?

A company produces and sells two products, product A and product B.

What are the total fixed costs when the weighted average contribution per unit is $5 and the breakeven points for product A and product B are 10,000 units and 5,000 units respectively?

Give your answer as a whole number (in 000's).

When a moving average is plotted onto a graph, where should the plotted points be located?

Which THREE of the following are functional budgets?

In short-term decision making, which TWO of the following are relevant costs?