- Exam Code: CIMAPRO15-P01-X1-ENG
- Exam Name: P1 - Management Accounting Question Tutorial
- Updated: Oct 08, 2026
- Q & A: 67 Questions and Answers
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| Section | Weight | Objectives |
|---|---|---|
| Risk and Uncertainty in the Short Term | 15% | - Techniques for dealing with uncertainty - Risk management tools and concepts |
| Short-Term Commercial Decision-Making | 30% | - Limiting factors and CVP analysis - Relevant costing and contribution analysis |
| Cost Accounting for Decision and Control | 30% | - Rationale for costing - Costing methods and analysis techniques - Application of costing to decisions |
| Budgeting and Budgetary Control | 25% | - Purpose and preparation of budgets - Budgetary control processes |

Calculate the sensitivity of the investment decision to a change in the annual fixed costs.
By how much should the present value of the fixed cost increase, before this project is not viable?
Correct Answer: C 🗳️
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A company produces three products D, E and F. The statement below shows the selling price and product costs per unit for each product, based on a traditional absorption costing system.
Each of the products is produced using Process A which has a maximum capacity of 2,500 hours per period.
If a traditional contribution approach is used, the ranking of products, in order of priority, for the profit maximizing product mix will be:
Correct Answer: A 🗳️
A healthcare company specializes in hip, knee and shoulder replacement operations, known as surgical procedures. As well as providing these surgical procedures the company offers pre operation and post operation in-patient care, in a fully equipped hospital, for those patients who will be undergoing the surgical procedures.
Surgeons are paid a fixed fee for each surgical procedure they perform and an additional amount for any follow-up consultations. Post procedure follow-up consultations are only undertaken if there are any complications in relation to the surgical procedure. There is no additional fee charged to patients for any follow up consultations. All other staff are paid annual salaries.
The company's existing costing system uses a single overhead rate, based on revenue, to charge the costs of support activities to the procedures. Concern has been raised about the inaccuracy of procedure costs and the company's accountant has initiated a project to implement an activity-based costing (ABC) system. The project team has collected the following data on each of the procedures.
Calculate the profit per procedure for each of the three procedures using activity-based costing.
What was the profit for the knee procedure, using ABC costing?
Correct Answer: D 🗳️
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The term 'budgetary slack' refers to the:
Correct Answer: A 🗳️
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XY can choose from four mutually exclusive projects. The projects will each last for one year and their net cash inflows will be determined by market conditions. The forecast net cash inflows for each of the possible outcomes are shown below.
If the company applies the maximax criterion the project chosen would be:
Correct Answer: B 🗳️
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