Free CIMA CIMAPRO19-P01-1 Exam Actual Questions

The questions for CIMAPRO19-P01-1 were last updated On Nov 5, 2024

Question No. 1

Company NBO is providing a quote to manufacture 500 passenger seats for a bus company.

Relevant cost is being used as the basis for the quote.

Which THREE of the following should be included as relevant costs or savings in the production of the 500 passenger seats?

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Correct Answer: B, D, E

Question No. 2

THS produces two products from different combinations of the same resources. Details of the products are shown below:

Identify, using graphical linear programming, the optimal production plan for products E and R to maximize THS's profit in the month.

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Correct Answer: D

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Question No. 3

Which of the following statements about relevant costs is correct?

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Correct Answer: C

Question No. 4

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:

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Correct Answer: B

Question No. 5

JL is preparing its cash budget for the next three quarters. The following data have

been extracted from the operational budgets:

Additional information is available as follows:

* JL sells 20% of its goods for cash. Of the remaining sales value, 70% is received within the same quarter as sale and 30% is received in the following quarter. It is estimated that trade receivables will be $125,000 at the beginning of Quarter 1. No bad debts are anticipated.

* 50% of payments for direct material purchases are made in the quarter of purchase, with the remaining 50% in the quarter following purchase. It is estimated that the amount owing for direct material purchases will be $60,000 at the beginning of Quarter 1.

* JL pays labour and overhead costs when they are incurred. It has been estimated that labour and overhead costs in total will be $303,600 per quarter. This figure includes depreciation of $19,600.

* JL expects to repay a loan of $100,000 in Quarter 3.

* The cash balance at the beginning of Quarter 1 is estimated to be $49,400 positive.

Required:

Prepare a cash budget for each of the THREE quarters.

What will the closing balance of cash flows in quarter THREE be?

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Correct Answer: E

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