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

Judging from a large number of evidence presented, we can safely conclude that people who possess a special skill will change their lives in future. Traditional field of work have changed dramatically and will be replaced by brain power. It is high time for you to master a skill. If you want to engage in this filed, you have to pass the P1 - Management Accounting Question Tutorial actual test to improve your ability. It is advisable for you to choose our product. Our CIMAPRO15-P01-X1-ENG pdf vce are the most popular product in the similar field. We have been tried out new function to perfect our products. Our CIMA valid vce will save you much of time and money which accounts for the high efficiency. What's more, it has virtue of strong function, and shortens a lot of time. If you want to pass the exam in a short time, choose our P1 - Management Accounting Question Tutorial valid vce, and you will get unexpected results.

High efficiency

If you are engaged in the industry, you must know the importance of this P1 - Management Accounting Question Tutorial certificate. It is almost a passport to industry. It is absolutely essential to get a certificate for people who will be engaged in the industry. If you work for big companies, your promotion may require more skills and ability. Now, it is a good opportunity to improve yourself. As you know, our CIMA Certification CIMAPRO15-P01-X1-ENG training online materials are with more authoritative contents, which developed and compiled by our professional experts. Please contact service under our shop online for any questions you have. Our staff will be online for 24 hours. Compared with other products, our P1 - Management Accounting Question Tutorial training online materials is easier to operate. The layout is simple and the content is clear. The one who choose our product will have more chance to pass the exam.

Professional design

After many years of research, we invented the exam torrent with much more humanism design and more secure. Our P1 - Management Accounting Question Tutorial training material is gradually recognized by people. Nowadays, information security is an inevitable problem in the information era. Our CIMA Certification training material also pays more and more attention to protection of information privacy. We promise that we will never disclose user information or use it for business. So our CIMAPRO15-P01-X1-ENG pass4sure cram is your best choice among other similar products. Furthermore our P1 - Management Accounting Question Tutorial torrent vce contains all the content of the exam; you needn't go to the bookshops or the libraries to seek information about the exam. Our CIMAPRO15-P01-X1-ENG pass4sure cram can assist you pass the exam in a short time due to high quality and convenience.

Instant Download: Upon successful payment, Our systems will automatically send the product you have purchased to your mailbox by email. (If not received within 12 hours, please contact us. Note: don't forget to check your spam.)

Free renewal for one year

Compared with other training material, our CIMA study materials provide customers with renewal in one year for free. If there is something new, we will send it to your email immediately. Our CIMAPRO15-P01-X1-ENG Training question not only focuses on the quality but also the user's rights. We know that user experience is very important for customers. A successful product will offer a good user experience. Our P1 - Management Accounting Question Tutorial pdf vce has been making efforts to improve quality to offer an outstanding user experience. Verbal statements are no guarantee, and you can download trial documentation by yourself. We offer the trial product, you can have a try.

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

CIMA P1 - Management Accounting Question Tutorial Sample Questions:

1. Explain the advantages of management participation in budget setting and the potential problems that may arise in the use of the resulting budget as a control mechanism.
Select all the correct answers.

A) Participation in budget setting can reduce the information asymmetry gap that can arise when targets are imposed by senior management. Imposed targets are likely to make managers feel demotivated and alienated and result in poor performance.
B) Participation in budget setting can cause problems; in particular, managers may attempt to negotiate budgets that they feel are easy to achieve which gives rise to "budget padding" or budgetary slack.
C) The participation of managers in the budget setting process has several advantages. Managers are more likely to be motivated to achieve the target if they have participated in setting process has several advantages. managers are more likely to be motivated to achieve the target if they have participated in setting the target.
D) Managers will not 'empire build' because they don't believe that the size of their budget reflects their importance within the organization.
E) A purposes of budgeting is to act as a control mechanism, with actual results being compared against budget.
F) Another purpose of a budget is to set targets to motivate managers and optimize their performance.

2. A company has budgeted to produce 5,000 units of Product B per month. The opening and closing inventories of Product B for next month are budgeted to be 400 units and 900 units respectively. The budgeted selling price and variable production costs per unit for Product B are as follows:

Total budgeted fixed production overheads are $29,500 per month. The company absorbs fixed production overheads on the basis of the budgeted number of units produced. The budgeted profit for Product B for next month, using absorption costing, is $20,700.
Prepare a marginal costing statement which shows the budgeted profit for Product B for next month.
What was the difference between the profit calculation using marginal costing and the profit calculation using absorption costing?

A) $2870
B) $3010
C) $2950
D) $3610
E) $2750

3. 'Public sector organizations are often judged by their economy, efficiency and effectiveness. Consequently, they should use an approach to budgeting other than incremental budgeting.' Required:
Explain ONE advantage and TWO disadvantages of public sector organizations using incremental budgeting.
Select all true statements.

A) Public sector organizations tend to be fairly complex and in many cases outputs cannot be measured in monetary terms therefore the link between inputs and outputs is difficult to establish. An incremental approach can therefore provide a cost effective approach to budgeting.
B) The incremental approach means that budget holders in public sector organizations will be encouraged to use up this year's budget will be as high as possible.
C) The main advantage of incremental budgeting is that the cost of past activities becomes fixed and any inefficiencies or wastage is perpetuated.
D) The incremental approach encourages managers in public sector organizations to look at the efficiency and effectiveness of activities undertaken.
E) Under an incremental approach to budgeting, existing operations and the current budgeted allowance for these existing activities are taken as the base level for preparing the budget.
F) An incremental; approach is not as easy and fast to implement than other forms of budgeting approaches e.g. zero based budgeting.

4. A healthcare company specializes in hip, knee and shoulder replacement operations, known as surgical procedures. As well as providing these surgical procedures the company offers pre operation and post operation in-patient care, in a fully equipped hospital, for those patients who will be undergoing the surgical procedures.
Surgeons are paid a fixed fee for each surgical procedure they perform and an additional amount for any follow-up consultations. Post procedure follow-up consultations are only undertaken if there are any complications in relation to the surgical procedure. There is no additional fee charged to patients for any follow up consultations. All other staff are paid annual salaries.
The company's existing costing system uses a single overhead rate, based on revenue, to charge the costs of support activities to the procedures. Concern has been raised about the inaccuracy of procedure costs and the company's accountant has initiated a project to implement an activity-based costing (ABC) system. The project team has collected the following data on each of the procedures.

Calculate the profit per procedure for each of the three procedures using activity-based costing.
What was the profit for the knee procedure, using ABC costing?

A) $2466
B) $1808
C) $781
D) $2305

5. JRL manufactures two products from different combinations of the same resources. Unit selling prices and unit cost details for each product are as follows:

* Refer to your answer in the previous question.
The optimal solution to the previous question shows that the shadow prices of skilled labour and direct material A are as follows:
Skilled labour $ Nil Direct Material A $11.70
Explain the relevance of these values to the management of JRL.
Select ALL the true statements.

A) The shadow price for skilled labour is NIL because although there is a shortage of skilled labour it does have a constraining effect on output of JR as other resources are more scarce.
B) In a situation such as this, where a number of resources are scarce, the shadow price of any particular scarce resource will depend on whether or not the resource is not binding.
C) Since material A is one of the binding constraints, if the availability of material A could be increased by one unit, this would change the optimal plan.
D) The decrease in contribution as a result of this change is the value of the shadow price of material A. The shadow price thus represents the maximum premium that should be paid for an additional unit of material A.
E) The shadow price equals the additional contribution that would be earned from one extra unit of a scarce resource.

Solutions: