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CIMA P1 Exam With Confidence Using Practice Dumps

Exam Code:
P1
Exam Name:
Management Accounting
Certification:
Vendor:
Questions:
260
Last Updated:
Jan 1, 2026
Exam Status:
Stable
CIMA P1

P1: CIMA Operational Exam 2025 Study Guide Pdf and Test Engine

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Management Accounting Questions and Answers

Question 1

A snowboard manufacturer is considering investing in technology that will give a good indication of how heavy snowfall will be in the future. The predictions tend to be reasonably accurate.

The current budgeted profit for the year is £2,560,000 but if they invest in this technology and it works, the expected profit will be £2,640,000. The manufacturer is willing to invest a maximum of £40,000 into the venture.

What is the expected profit if the investment is NOT made?

Options:

A.

£2,560,000

B.

£2,640,000

C.

£2,520,000

D.

£2,600,000

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Question 2

XY, a not-for-profit charity organization which is funded by public donations, is concerned that it is not making the best use of its available funds. It has carried out a review of its budgeting system and is considering replacing the current system with a zero-based budgeting system.

Select ALL the potential advantages AND disadvantages for the charity of a zero-based budgeting system.

Options:

A.

It avoids the complacency inherent in the traditional incremental approach where it is assumed that future activities will be very similar to current ones.

B.

It discourages a questioning approach by focusing attention not only on the cost of the activity but on the benefits it provides. The charity managers will not articulate the benefits encouraging them to think clearly about the activities.

C.

Preparation of the decision packages will normally require the environment of many employees. This environment may produce useful ideas and promote job satisfaction.

D.

The creation of decision packages and their subsequent ranking by top management is very time consuming and costly. The charity will need to assess whether the benefits of the system outweigh the costs involved.

E.

In an organization like a charity, the decision packages are not very disparate and difficult t compare.

F.

In applying traditional budgeting, ‘activities’ may result in functional departments rather than cross functional activities and thus distract attention from the real cost-reduction issues.

Question 3

A company has identified the trend in its sales figures through the regression equation Y = 65.9 + 3.86X, where Y is the sales revenue in thousands of dollars and X is the month number. The average seasonal variation for October is 87%

Calculate the forecast sales revenue for October of Year 6.

Give your answer to the nearest $000.

Options: