CIMAPRO19-P01-1 P1 Management Accounting Exam Practice Test

A museum charges a reduced entrance fee for students in full-time education. The budgeted cost per customer is the same regardless of the entrance fee paid.

4,000 customers were budgeted to visit the museum during period 6, with 25% of customers paying the reduced fee.

3,000 customers visited the museum during period 6 and 1,000 of these paid the reduced entrance fee. Costs were as budgeted but the actual full-priced entrance fee was $2 higher than budgeted.

Which of the following statements is true?

A company has a budgeted contribution to sales (C/S) ratio of 30% and a budgeted operating profit margin of 20%. Budgeted sales were $100,000.

In month 2, actual production and sales volumes and all costs were as budgeted. The actual C/S ratio was 33% .

Which of the following statements, about the company's contribution and operating profit in month 2, is correct?

Which TWO of the following statements are true for obtaining a reliable forecast from a time series?

A company has to choose between three mutually exclusive projects. Market research has shown that customers could react to the projects in three different ways depending on their preferences. There is a 30% chance that customers will exhibit preferences 1, a 20% chance they will exhibit preferences 2 and a 50% chance they will exhibit preferences 3. The company uses expected value to make this type of decision.

The net present value of each of the possible outcomes is as follows:

A market research company believes it can provide perfect information about the preferences of customers in this market.

What is the maximum amount that should be paid for the information from the market research company?

A company accountant is trying to determine the optimum production plan for the period using linear programming.

The accountant has correctly formulated the linear programming problem as follows:

Variables (products): x and y

Objective function: Maximise contribution, C = 10x + 15y

Material constraint: 4x + 6y 500 (kg)

Labour constraint: x + 2y 350 (hours)

Machine constraint: 10x + 4y 1,500 (hours)

x constraint: 50 x 200

y constraint: y 0

Which of the following statements is true?

The marketing director of a company is deciding which of three products to launch into a new market.

The following table of possible outcomes has been prepared.

What is the value of perfect information about market conditions?

Give your answer as a whole number to the nearest $ million.

FGH used to manufacture components that required raw material Q.

Currently there are 80 kg of material Q in inventory.

The company has no use for the material in the foreseeable future and intends to sell it for scrap.

A potential new customer has asked for a price for a large order.

This order would require 100 kg of material Q.

The company management has decided to quote a price for this work on a relevant cost basis.

Details of costs for material Q are as follows:

What would be the relevant cost of Material Q to use in this order?