Online Access Free CIMAPRO19-P01-1 Practice Test

A company produces trays of pre-prepared meals that are sold to restaurants and food retailers. Three varieties of meals are sold: economy, premium and deluxe.


Calculate, for the original budget, the budgeted fixed overhead costs, the budgeted variable overhead cost per tray and the budgeted total overheads costs.

• A.The variable cost per tray = $0.65; The fixed cost = $ 550 000
• B.The variable cost per tray = $0.75; The fixed cost = $ 490 000
• C.The variable cost per tray = $0.85; The fixed cost = $ 530 000
• D.The variable cost per tray = $0.45; The fixed cost = $ 320 000

A company sells three products A, B and C in a ratio of 2:2:3.
Each unit of A,B and C earns a contribution of $4.00, $2.00 and $4.00 respectively. Production fixed costs are $69,000 each month and selling fixed costs are $13,000 each month.
The company holds no inventory. The management accountant wants to know the total number of units needed to break-even. However, he is unsure about how to calculate the weighted average contribution per unit or what category of fixed cost to use.
Place the amounts given to complete the table in order to calculate the total number of units to break even.

Correct Answer:

FG Enterprises manufactures and sells three products. There are 4,400 kg of Material X available in the next period. Material X is used in the manufacture of all three products. The following data is available for the next period.

What is the optimal production plan for the next period in order to maximise profit?

• A.Product L 3,000 units
  Product M 4,400 units
  Product N 4,000 units
• B.Product L 3,000 units
  Product M 5,000 units
  Product N 4,000 units
• C.Product L 3,000 units
  Product M 5,000 units
  Product N 3,250 units
• D.Product L 1,500 units
  Product M 5,000 units
  Product N 4,000 units

Product G has the following sales information:

If moving averages of annual sales over 3-year periods are calculated, what is the moving average at Year 3?

• A.185
• B.168
• C.170
• D.182

Which THREE of the following statements about different costing systems are correct?

• A.Finished goods inventory will be assigned a higher value using throughput costing than absorption costing.
• B.Contribution per unit is the selling price per unit minus the variable costs per unit.
• C.In a period during which finished goods inventory levels fall, profit using marginal costing will be higher than if absorption costing is used.
• D.When valuing inventory using throughput costing, the direct labour cost is excluded.
• E.Over-absorption of fixed production overhead is caused by actual sales exceeding budgeted sales.