Online Access Free P1 Practice Test

A manufacturing company produces and sells a single product.
It is preparing its budget for the next period and expects to breakeven.
Budgeted fixed costs are the same as budgeted variable costs and the budgeted contribution to sales ratio is 50%.
If all budgeted costs decreased by 10%, which of the following statements is true?

• A.Total profit would increase by the same amount as the increase in total contribution.
• B.The contribution to sales margin would increase by less than five percentage points.
• C.The contribution to sales margin would increase by more than five percentage points.
• D.Total contribution would increase by less than the increase in total profit.

When a moving average is plotted onto a graph, where should the plotted points be located?

• A.At the beginning of the period to which they apply.
• B.At the mid-point of the period to which they apply.
• C.Anywhere within the period to which they apply.
• D.At the end of the period to which they apply.

In short-term decision making, which TWO of the following are relevant costs?

• A.Opportunity costs
• B.Committed costs
• C.Avoidable costs
• D.Notional costs
• E.Sunk costs

TDM edits, prints and publishes three magazines, Mag A, Mag B and Mag C. The company operates an activity-based costing system.
The following information has been obtained.

What is the overhead cost attributable for each Mag A publication?
Give your answer to the nearest whole cent.

A project has an expected value of $165,250.
The estimates of cash inflows and their probabilities are:

What is the missing cash inflow?
Give your answer as a whole number.