CIMAPRO19-P01-1 P1 Management Accounting Exam Practice Test

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Total 260 questions
Question 1

A manager has to decide between four mutually exclusive projects, A, B, C and D:

Using the above information, which Project would a risk seeking manager choose?



Answer : D


Question 2

The daily demand for a perishable product has the following probability distribution:

Each unit of the product costs $6 and is sold for $10.

Unsold items are thrown away at the end of the day.

Orders must be placed each morning before the daily demand is known.

The payoff table below shows the profit that would be earned for each of the combinations of purchases and demand.

The number of units that should be purchased at the beginning of each day in order to maximize expected profit is:

See Below Explanation:




Answer : A


Question 3

RST is preparing a quotation, on a relevant cost basis, for a special order.

Which TWO of the following are relevant costs that should be included in the quotation?



Answer : A, D


Question 4

A special contract requires 640 units of component T.

The inventory of 280 units of component T cost $0.20 per unit but the component is not currently used by the company.

The current market price of component T is $0.24 per unit but the inventory could be sold for $0.15 per unit.

The relevant cost of the units of component T required for the special contract is:



Answer : B


Question 5

The breakeven point in units, in a multiple product context, is calculated using which of the following formulae?



Answer : C


Question 6

8fb9be1c-b0d5-4acb-8cfb-f4b4426e641B. The primary objective of Company A is to maximize profit. It is now deciding on the optimum production mix for the next period and has one limited production resource.

The production mix decision should be based on:



Answer : B


Question 7

A manufacturing company has more units of finished goods inventory at the end of a period than at the beginning of the period.

Which of the following statements is true?



Answer : A


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Total 260 questions