Free CIMA CIMAPRO19-P01-1-ENG Exam Questions

Become CIMA Certified with updated CIMAPRO19-P01-1-ENG exam questions and correct answers

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Total 261 Questions | Updated On: Apr 14, 2026

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Question 1

The standard production cost of making a product is as follows:

What is the fixed production overhead capacity variance?

A : $9,000F

B : $6,000F

C : $3,000F

D : $6,000A

Answer: B

Question 2

Two products being produced by a company require the same material which is limited to 2,600 kgs.

What is the optimal production plan?

A : 500 units of S & 100 units of T

B : 50 units of S & 400 units of T

C : 400 units of S & 167 units of T

D : 500 units of S & 400 units of T

Answer: A

Question 3

THS produces two products from different combinations of the same resources. Details of the products are shown below:

Identify, using graphical linear programming, the optimal production plan for products E and R to maximize THS's profit in the month.

A : solution (from the graph0 is to produce 675 units of E and 470 units of R.

B : solution (from the graph0 is to produce 495 units of E and 670 units of R.

C : solution (from the graph0 is to produce 475 units of E and 770 units of R.

D : solution (from the graph0 is to produce 375 units of E and 750 units of R.

E : solution (from the graph0 is to produce 375 units of E and 870 units of R.

F : solution (from the graph0 is to produce 495 units of E and 470 units of R.

Answer: D

Question 4

A medium-sized manufacturing company, which operates in the electronics industry, has employed a firm of consultants to carry out a review of the company's planning and control systems. The company presently uses a traditional incremental budgeting system and the inventory management system is based on economic order quantities (EOQ) and reorder levels. The company's normal production patterns have changed significantly over the previous few years as a result of increasing demand for customized products. This has resulted in shorter production runs and difficulties with production and resource planning. The consultants have recommended the implementation of activity based budgeting and a manufacturing resource planning system to improve planning and resource management.

What are the benefits for the company that could occur following the introduction of an activity based budgeting system?

Select ALL the correct answers.

A : der an activity based budgeting system, resource allocation is linked to the strategic plan and is prepared after considering alternative strategies. This approach ensures that new activities that are required to meet the company's strategic objectives are included in the budget.

B : der a traditional incremental budgeting system the focus is on existing resources and operations. Adjustments are then made for changes in activity and price which results in past inefficiencies being perpetuated. Under an activity based budgeting system, only resources that are needed to perform activities required to meet the budgeted production and sales volumes are included.

C : tivity based techniques including activity based budgeting focus on the outputs of a process rather than the input to the process. This approach provides a clear framework for understanding the link between costs and the level of activity. It allows the ranking of activities and the determination of how limited resources should be allocated across competing activities.

D : tivity Based Budgeting Systems present costs under functional headings i.e. the emphasis is on the nature of the cost. The weakness if this approach is that it gives little indication of the link between the level of activity and the cost incurred.

E : approach under an Activity based Budgeting System is to make arbitrary cuts in order to meet overall financial targets.

Answer: A,B,C

Question 5

Which TWO of the following statements are true for obtaining a reliable forecast from a time series?

A : ere must be an increasing trend.

B : past trend must continue in the future.

C : past pattern of seasonal variations must continue in the future.

D : trapolation of the trend must be avoided.

E : ere must be a decreasing trend.

Answer: B,C

Page: 1 / 53

Total 261 Questions | Updated On: Apr 14, 2026

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