CIMA CIMAPRO19-P01-1 P1 Management Accounting Exam Exam Practice Test Questions

• Question 1

  Which of the following statements about total quality management are incorrect? Select ALL that apply.

  • The culture of an organisation should be to get things right the first time.
  • Everyone within an organisation should be involved in improving quality.
  • All costs relating to quality should be examined, particularly those relating to failure costs.
  • There is an acceptable quality level that an organisation must try to achieve.
  • The costs of conformance are more important than the costs of non-conformance.
  • The organisation should rely on inspection to achieve quality standards.

  Show Answer Answer: D, E, F Next

• Question 2

  A company's markets are affected by fluctuating exchange rates. It is difficult to forecast more than two or three months ahead.Which of the following budgeting systems would be most useful in this company's circumstances?

  • Rolling budgets
  • Flexed budgets
  • Activity-based budgets
  • Zero-based budgets

  Show Answer Answer: A Next

• Question 3

  A company uses limiting factor analysis to identify its optimal production plan. All of the company's products are manufactured in house and cannot be bought in.What objective is assumed with limited factor analysis?

  • Cost minimisation
  • Ensuring customer demand is met
  • Profit maximisation
  • Revenue maximisation

  Show Answer Answer: C Next

• Question 4

  Christian the management accountant at a car manufacturer has been given a list of costs that have been incurred due to accidents and errors either occurring or being prevented.Which of the following are examples of non-conformance costs? Select ALL that apply.

  • Cost of scrap
  • Loss of goodwill
  • Cost of repairs to products
  • Inspection costs
  • Cost of repairs to equipment

  Show Answer Answer: A, B, C Next

• Question 5

  A company operates a standard costing system.The company combines two raw materials in a process in order to produce a finished product. During month 6 the direct material mix variance was favourable and the direct material yield variance was adverse.Which of the following statements would explain both of the variances?

  • There was more wastage in the process than standard and a greater proportion of the cheaper of the two materials was input than standard.
  • Both of the materials were purchased at a lower price than standard and the lower quality increased wastage.
  • Higher skilled labour resulted in less wastage from the process than standard and a lower proportion of the more expensive of the two materials was input than standard.
  • The actual wastage from the process was equal to standard and a greater proportion of the cheaper of the two materials was input than standard.

  Show Answer Answer: A Next