Obtain the P1 PDF Dumps Get 100% Outcomes Exam Questions For You To Pass

P1 Exam Dumps Contains FREE Real Quesions from the Actual Exam

NEW QUESTION 48
State whether the following costs are relevant or non-relevant in the context of short-term decision making scenarios.

Answer:

Explanation:

 

NEW QUESTION 49
A company produces three products D, E and F. The statement below shows the selling price and product costs per unit for each product, based on a traditional absorption costing system.

Each of the products is produced using Process A which has a maximum capacity of 2,500 hours per period.
If a throughput accounting approach is used, the ranking of products, in order of priority, for the profit maximizing product mix will be:

• A. D, F, E
• B. F, D, E
• C. E, D, F
• D. D, E, F

Answer: B

 

NEW QUESTION 50
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. The cost of a training course for staff which will be undertaken if the contract is won.
• B. The depreciation charge on the tools which will be used during the contract.
• C. The cost of hiring a machine which will be hired if the contract is won.
• D. The purchase cost of direct materials not currently in inventory.

Answer: B

 

NEW QUESTION 51
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. No. (1) and (2) are incorrect.
• B. No. (3) and (2) are incorrect.
• C. Yes. They ore all correct
• D. No. (2) is incorrect No. (1) is incorrect

Answer: D

 

NEW QUESTION 52
A company's budget for the next period shows that it would breakeven at sales revenue of $800,000 and fixed costs of $320,000.
The sales revenue needed to achieve a profit of $200,000 in the next period would be:

• A. $1,390,000
• B. $1,300,000
• C. $1,780,000
• D. $1,400,000
• E. $1,950,000

Answer: B

 

NEW QUESTION 53
Which of the following would help to explain a favourable material price variance?

• A. The material purchased was of a higher quality than standard.
• B. A decision to reduce the raw materials inventory during the period led to a reduced level of material purchases.
• C. Improved processing methods meant that material purchases were lower than standard for the output achieved.
• D. An increase in the quantity of material purchased resulted in unexpected bulk discounts.

Answer: D

 

NEW QUESTION 54
A company is forecasting sales volume using time series analysis. The following equation has been derived from past data and is considered to be a reliable predictor of future sales volume:
y = 20,000+80x
Where y is the total sales units each quarter and x is the time period (the first quarter of year 1 is time period 1).

The following set of seasonal variations for each quarter has been calculated using the additive model.
What is the forecast sales units for the second quarter of year 3?

• A. 21,200
• B. 20,400
• C. 20,720
• D. 21,520

Answer: A

 

NEW QUESTION 55
A company is forecasting its revenue for May and has established that sales will be either high, medium or low. The expected value of sales revenue for May has been calculated as $160,000. The following table includes data which relate to the potential sales in May.
Revenue Probability Expected Value
High $250,000 0.2 C
Medium A 0.5 D
Low $100,000 B $30,000
Place the figures given in to the spaces marked with the letters A, B, C and D, to complete the above table.

Answer:

Explanation:

 

NEW QUESTION 56
A company makes and sells three products A, B and C.
The selling prices and costs of the three products, using a traditional absoprtion costing system, are shown in the table below.

The company has undertaken an analysis of overhead costs using activity-based costing (ABC).
The revised overhead costs for products A, B and C are $6, $32 and $55 respectively.
When comparing the figures obtained under the two costing methods, which of the following statements are true?
Select ALL that apply.

• A. Product C is currently overpriced based on cost plus pricing and the selling price should be reduced.
• B. Product B makes a profit under both methods, but the profit is lower using ABC.
• C. Product A shows a profit under ABC but had appeared loss making under traditional absorption costing.
• D. The product that is the most profitable under traditional absorption costing makes a loss under the ABC methodology.
• E. Activity-based costing results in a lower level of overhead costs for the company.

Answer: B,C,D

 

NEW QUESTION 57
Company Y absorbs fixed production overheads using a rate per machine hour. Budgeted and actual data for month 8 are as follows:

What is the fixed production overhead efficiency variance?

• A. $1,000,000 favourable
• B. $1,000,000 adverse
• C. $400,000 adverse
• D. $400,000 favourable

Answer: D

 

NEW QUESTION 58
A completed unit of Product A requires 9 kg of material and 10% of material is wasted in the production process.
Material has a standard cost of $5 per kg.
Product A also requires 4 labour hours at a standard cost of $10 per labour hour and variable overheads at a standard cost of $2 per labour hour What is the standard variable production cost per unit of Product A?

• A. $97.50
• B. $93
• C. $50
• D. $98

Answer: D

 

NEW QUESTION 59
A company uses an activity based costing system. The company manufactures three products, details of which are given below:

• A. $0.27
• B. $0.23
• C. $0.31
• D. $0.35

Answer: A

 

NEW QUESTION 60
A company is launching a new product with a selling price of $20.
Demand and variable cost are both uncertain and possible demand levels and variable costs are given below:

Outcomes for demand and variable cost are independent.
What is the expected contribution from the product?
Give your answer as a whole number.

Answer:

Explanation:
$6384

 

NEW QUESTION 61
The standard production cost of making a product is as follows:

What is the fixed production overhead capacity variance?

• A. $6,000F
• B. $6,000A
• C. $3,000F
• D. $9,000F

Answer: A

 

NEW QUESTION 62
Which one of the following would NOT be included in a decision to close a division of an organization?

• A. Fixed costs directly attributable to the division
• B. Sale of unwanted non-current assets
• C. Redundancy pay for employees of the division
• D. Head office overheads absorbed on the basis of the number of units produced

Answer: D

 

NEW QUESTION 63
MDS is facing a temporary shortage of Material H which is used to produce all three of its products.
In order to maximise its profitability, which product should be manufactured first?

• A. The product with the highest profit per unit.
• B. The product with the highest contribution per unit.
• C. The product with the highest contribution per kg of Material H.
• D. The product using the least amount of Material H per unit.

Answer: C

 

NEW QUESTION 64
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?

Answer:

Explanation:
0.45

 

NEW QUESTION 65
Explain how probability analysis could be used to assess the risk of the evaluated projects.
Select all the true statements.

• A. The company can determine a range of possible outcomes for each of the cash flows in the project, for example, a high, low and medium estimate of each cash flow could be determined.
• B. The NPVs of a sample range of possible outcomes and the probability of each NPV can be calculated.
  If a small sample is taken the distribution of outcomes can be used to calculate the zero activities deviation of the NPVs and the probability of success of the projects.
• C. The net present value (NPV) of the project, if all high, low or medium estimates occurred, can be calculated along with the combined probabilities of their occurrence.
• D. The probabilities can be combined to calculate the expected value of each cash flow element and of the project as a whole

Answer: A,C,D

 

NEW QUESTION 66
A flexible budget is a budget that is:

• A. set prior to the control period and not subsequently changed in response to changes in activity period has expired
• B. changed in response to changes in costs
• C. continuously updated by adding a further accounting period when the earliest accounting period has expired
• D. changed in response to changes in the level of activity

Answer: D

 

NEW QUESTION 67
A manager must select one of three projects, W, X or Y.
The following payoff table has been prepared to show the outcomes in $000 at three possible levels of demand:

The manager is now preparing a regret matrix.
What figure (in $000) will be shown for Project Y in the regret matrix if the average demand arises?

• A. 0
• B. 1
• C. 2
• D. 3

Answer: D

 

NEW QUESTION 68
......

Use Real CIMA Achieve the P1 Dumps - 100% Exam Passing Guarantee: https://www.validexam.com/P1-latest-dumps.html