CIMA P1 Practice Questions - CIMA Operational Level P1 Management Accounting Exam - CIMA P1 Practice Questions - CIMA Operational Level P1 Management Accounting Exam

Question 1

A company uses absorption costing. Fixed production overhead is $200,000 and budgeted output is 50,000 units. Actual output is 48,000 units. What is the fixed production overhead volume variance?

$$8,000 adverse $$8,000 favourable $$2,000 adverse $$4,000 favourable

Correct Answer:

$$8,000 adverse

Question 2

Under marginal costing, how is fixed production overhead treated when valuing closing inventory?

Included at the full absorption rate per unit Included only at the variable element Excluded entirely from inventory valuation Included at the budgeted, not actual, rate

Correct Answer:

Excluded entirely from inventory valuation

Question 3

When production exceeds sales in a period, how will absorption costing profit compare with marginal costing profit?

The two profits will be equal It depends on the sales price Absorption profit will be lower Absorption profit will be higher

Correct Answer:

Absorption profit will be higher

Question 4

Activity-based costing (ABC) assigns overhead to products primarily using which of the following?

Direct labour hours only The proportion of direct material cost A single plant-wide volume-based rate Cost drivers that cause the activities

Correct Answer:

Cost drivers that cause the activities

Question 5

A product passes through a process with normal loss of 10% of input. 5,000 litres are input at a total cost of $47,500, and normal loss has a scrap value of $1 per litre. Actual output equals expected output (no abnormal loss or gain). What is the cost per litre of good output?

$$10.56 $$9.00 $$9.50 $$10.44

Correct Answer:

$$10.44

Question 1

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About this Exam

Prepare with the CIMA P1 Practice Questions - CIMA Operational Level P1 Management Accounting Exam practice quiz. This question bank includes 100 questions covering cost, units, costing, variance, and overhead. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CIMA P1 Practice Questions - CIMA Operational Level P1 Management Accounting Exam

This practice set contains 100 questions from the matching question bank and focuses on cost, units, costing, variance, and overhead. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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CIMA P1 Practice Questions - CIMA Operational Level P1 Management Accounting Exam

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