CIMA P1 Management Accounting CIMAPRO19-P01-1 Exam Questions

An analysis of past sales data shows that the underlying trend in a company's sales volume can be represented by:

Y = 50X + 625

Where Y is the trend sales units for a quarter and X is the quarterly period number.

The seasonal variation index values have been identified as follows:

The forecast sales volume in units for quarter 4 next year, which is period 14, is:

MBB is considering the costs to be incurred in respect of a special order.

The order would require 625 kg of Material K.

This is a material that is readily available and regularly used by the organization in its other products.

There are 265 kg of Material K in inventory which cost $1,590 when it was purchased.

The current market price is $6.48 per kg.

Material K is normally used to make Product X. Each unit of Material X requires 3 kg of Material K, and if Material K is costed at $6 per kg, each unit of Product X yields a contribution of $30.

The relevant cost of Material K to be included in the costing of the special order is:

A company has identified the trend in its sales figures through the regression equation Y = 65.9 + 3.86X, where Y is the sales revenue in thousands of dollars and X is the month number. The average seasonal variation for October is 87%

Calculate the forecast sales revenue for October of Year 6.

Give your answer to the nearest $000.

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?

Traditional absorption costing is more suitable than activity-based costing when:

A company is bidding to win a special contract.

Which of the following is NOT a relevant cost to the company of undertaking the contract?

A musical instrument manufacturing company is considering a new project that will require 1000 kg of wood. They have 700 kgs of wood in stock which was purchased last year for 4 per kg. The wood in stock can be sold back to the supplier for 5 per kg. The wood in stock will have to be replaced if it is used. The current purchase price of wood is 8 per kg.

Using this information, what is the relevant cost of wood for the manufacturers decision on this project?