CIMA Management Accounting - CIMAPRO19-P01-1 Exam Practice Test
CH is a building supplies company that sells products to trade and private customers.
Budget data for each of the six months to March are given below:
80% of the value of credit sales is received in the month after sale, 10% two months after sale and 8% three months after sale. The balance is written off as a bad debt.
75% of the value of credit purchases is paid in the month after purchase and the remaining 25% is paid two months after purchase.
All other operating costs are paid in the month they are incurred.
CH has placed an order for four new forklift trucks that will cost $25,000 each. The scheduled payment date is in February.
The cash balance at 1 January is estimated to be $15,000.
Prepare a cash budget for each of the THREE months of January, February and March.
Select All the correct answers.
Budget data for each of the six months to March are given below:
80% of the value of credit sales is received in the month after sale, 10% two months after sale and 8% three months after sale. The balance is written off as a bad debt.
75% of the value of credit purchases is paid in the month after purchase and the remaining 25% is paid two months after purchase.
All other operating costs are paid in the month they are incurred.
CH has placed an order for four new forklift trucks that will cost $25,000 each. The scheduled payment date is in February.
The cash balance at 1 January is estimated to be $15,000.
Prepare a cash budget for each of the THREE months of January, February and March.
Select All the correct answers.
Correct Answer: A,B
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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).
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).
Correct Answer:
$75000
Information about a company's two products is as follows:
The products are currently sold in equal quantities.
Monthly fixed costs are $360,000.
What is the monthly breakeven sales revenue assuming a sales quantity mix of 50/50?
Give your answer to the nearest $.
The products are currently sold in equal quantities.
Monthly fixed costs are $360,000.
What is the monthly breakeven sales revenue assuming a sales quantity mix of 50/50?
Give your answer to the nearest $.
Correct Answer:
$1600000
The standard production cost of making a product is as follows:
What is the fixed production overhead efficiency variance?
Give your answer as a whole number.
What is the fixed production overhead efficiency variance?
Give your answer as a whole number.
Correct Answer:
$3000 F
A company is launching a new product.
The company accountant has constructed a payoff table to show the estimated profit at different levels of production and demand.
How many units should the company produce if the minimax regret criterion is applied?
The company accountant has constructed a payoff table to show the estimated profit at different levels of production and demand.
How many units should the company produce if the minimax regret criterion is applied?
Correct Answer: A
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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)?
Correct Answer: C
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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?
This example falls under which behavioural aspect of budgetary control?
Correct Answer: D
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Which THREE of the following are functional budgets?
Correct Answer: A,C,E
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