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CIMAPRO19-P01-1 Exam Questions
- Topic 1: Determine causality in cost function estimates and impact on budgets/ Identify inventory costs and period costs
- Topic 2: Determine the activity that causes the change in cost/ Understand the difference between variable costs and fixed costs
- Topic 3: Understand relevant cash flows and their use in pricing decisions/ Calculate the costs for products or services using activity-based costing
- Topic 4: Calculate the breakeven point and output level required to meet income targets/ Understand costing and the different reasons for calculating costs
- Topic 5: Understand the impact of individuals? risk attitudes on decision-making in the short term/ Understand the difference between direct costs and indirect costs
- Topic 6: Calculate revenue and cost estimates using quantitative analyses/ Calculate and interpret overall flexed budget variances
- Topic 7: Understand relevant cash flows and non-financial factors and how it affects make or buy decisions/ Understand the strategic implications of short-term decision-making
- Topic 8: Understand how budgets can help energize and motive individuals and teams/ Recognise how management accountants help make tactical business decisions
- Topic 9: Calculate subdivision of total usage/efficiency variances into mix and yield variances/ Use material, labour, variable overhead, fixed overhead and sales variances
- Topic 10: Establish manufacturing standards for material, labour, variable overhead and fixed overhead/ Understand the difference between financial accounting and cost accounting
Free CIMA CIMAPRO19-P01-1 Exam Actual Questions
Note: Premium Questions for CIMAPRO19-P01-1 were last updated On Jul. 13, 2024 (see below)
Explain how probability analysis could be used to assess the risk of the evaluated projects.
Select all the true statements.
References:
A major company sells a range of electrical, clothing and homeware products through a chain of department stores. The main administration functions are provided from the company's head office. Each department store has its own warehouse which receives goods that are delivered from a central distribution center.
The company currently measures profitability by product group for each store using an absorption costing system. All overhead costs are charged to product groups based on sales revenue. Overhead costs account for approximately one-third of total costs and the directors are concerned about the arbitrary nature of the current method used to charge these costs to product groups.
A consultant has been appointed to analyses the activities that are undertaken in the department stores and to establish an activity based costing system.
The consultant has identified the following data for the latest period for each of the product groups for the X Town store:
Calculate the total profit for each of the product groups:
.... using the current absorption costing system;
Explain how probability analysis could be used to assess the risk of the evaluated projects.
Select all the true statements.
References:
A company sells and services photocopying machines. Its sales department sells the machines and consumables, including ink and paper, and its service department provides an after sales service to its customers. The after sales service includes planned maintenance of the machine and repairs in the event of a machine breakdown. Service department customers are charged an amount per copy that differs depending on the size of the machine.
The company's existing costing system uses a single overhead rate, based on total sales revenue from copy charges, to charge the cost of the Service Department's support activities to each size of machine. The Service Manager has suggested that the copy charge should more accurately reflect the costs involved. The company's accountant has decided to implement an activity-based costing system and has obtained the following information about the support activities of the service department:
Calculate the annual profit per machine for each of the three sizes of machine, using the current basis for charging the costs of support activities to machines.
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Dusti
22 days agoCecily
24 days ago