CIMA CIMAPRO15-P01-X1-ENG : P1 - Management Accounting Question Tutorial

Exam Code: CIMAPRO15-P01-X1-ENG

Exam Name: P1 - Management Accounting Question Tutorial

Updated: Sep 18, 2026

Q & A: 67 Questions and Answers

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CIMA CIMAPRO15-P01-X1-ENG Exam Syllabus Topics:

Section	Objectives
Short-term Decision Making	- Cost-volume-profit (CVP) analysis - Break-even analysis
Budgeting and Forecasting	- Variance analysis basics - Budget preparation techniques
Introduction to Management Accounting	- Cost classification and behavior - Role and purpose of management accounting
Cost Accounting Principles	- Absorption and marginal costing - Material, labor, and overhead costing

CIMA P1 - Management Accounting Question Tutorial Sample Questions:

Question #1

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

A. 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.
B. The probabilities can be combined to calculate the expected value of each cash flow element and of the project as a whole
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 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.

Reveal Solution Discussion 0

Correct Answer: B,C,D 🗳️

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Question #2

QR uses an activity based budgeting (ABB) system to budget product costs. It manufactures two products, product Q and product R. The budget details for these two products for the forthcoming period are as follows:

The total budgeted cost of setting up the machines is $74,400.
What was the budgeted machine set up cost per unit of product Q?

A. $0.37 per unit
B. $0.39 per unit
C. $0.48 per unit
D. $0.56 per unit

Reveal Solution Discussion 0

Correct Answer: C 🗳️

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Question #3

Calculate the sensitivity of the investment decision to a change in the annual fixed costs.
By how much should the present value of the fixed cost increase, before this project is not viable?

A. $9050
B. $8675
C. $6390
D. $7698

Reveal Solution Discussion 0

Correct Answer: B 🗳️

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Question #4

A company produces a product that requires two materials, Material A and Material B. Details of the material quantities and costs for August are given in the table below.

Budgeted and actual output of the product for August was 12,000 units.
The material mix variance for August is:

A. $ 1, 540 Adverse
B. $ 1, 288 Favourable
C. $ 1, 540 Favourable
D. $ 1, 540 Adverse

Reveal Solution Discussion 0

Correct Answer: C 🗳️

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Question #5

RT produces two products from different quantities of the same resources using a just-in-time (JIT) production system. The selling price and resource requirements of each of the products are shown below:

Market research shows that the maximum demand for products R and T during June 2010 is 500 units and
800 units respectively. This does not include an order that RT has agreed with a commercial customer for the supply of 250 units of R and 350 units of T at selling prices of $100 and $135 per unit respectively. Although the customer will accept part of the order, failure by RT to deliver the order in full by the end of June will cause RT to incur a $10,000 financial penalty. At a recent meeting of the purchasing and production managers to discuss the production plans of RT for June, the following resource restrictions for June were identified:
Direct labour hours 7,500 hours
Material A 8,500 kgs
Material B 3,000 litres
Machine hours 7,500 hours
Assuming that RT completes the order with the commercial customer, prepare calculations to show, from a financial perspective, the optimum production plan for June 2010 and the contribution that would result from adopting this plan.
The contribution per unit for R and T will be...?

A. R = $47 per unit. T = $65 per unit
B. R = $45 per unit. T = $66 per unit
C. R = $47 per unit. T = $61 per unit
D. R = $51 per unit. T = $61 per unit

Reveal Solution Discussion 0

Correct Answer: C 🗳️

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CIMA CIMAPRO15-P01-X1-ENG : P1 - Management Accounting Question Tutorial

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CIMA CIMAPRO15-P01-X1-ENG Exam Syllabus Topics:

CIMA P1 - Management Accounting Question Tutorial Sample Questions:

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