CIMAPRO15-P01-X1-ENG Exam Questions and Answers

QUESTION: 11

A company has budgeted to produce 5,000 units of Product B per month. The opening and closing inventories of Product B for next month are budgeted to be 400 units and 900 units respectively.

The budgeted selling price and variable production costs per unit for Product B are as follows:

Total budgeted fixed production overheads are $29,500 per month.
The company absorbs fixed production overheads on the basis of the budgeted number of units produced. The budgeted profit for Product B for next month, using absorption costing, is $20,700.

Prepare a marginal costing statement which shows the budgeted profit for Product B for next month.
What was the marginal costing profit for the next month?

$17 750
$18 600
$17 890
$18 750

Answer(s): A

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QUESTION: 12

A company has budgeted to produce 5,000 units of Product B per month. The opening and closing inventories of Product B for next month are budgeted to be 400 units and 900 units respectively.

The budgeted selling price and variable production costs per unit for Product B are as follows:

Total budgeted fixed production overheads are $29,500 per month. The company absorbs fixed production overheads on the basis of the budgeted number of units produced. The budgeted profit for Product B for next month, using absorption costing, is $20,700. Prepare a marginal costing statement which shows the budgeted profit for Product B for next month.

What was the difference between the profit calculation using marginal costing and the profit calculation using absorption costing?

$2870
$3010
$2950
$3610
$2750

Answer(s): C

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QUESTION: 13

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 the current basis for charging the costs of support activities to procedures.

What was the profit for the knee procedure?

$1510
$1210
$1390
$1485

Answer(s): B

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QUESTION: 14

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?

$2466
$781
$1808
$2305

Answer(s): A

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QUESTION: 15

Assume that you have made profit calculations based on standard profit calculation methods and activity based costing methods.

In which ways will this information be beneficial to the management team?
Select all the true statements.

Under an activity based costing system the various support activities that are involved in the process of making products or providing services are identified.
The cost drivers that cause a change to the cost of activities are also identified and used as the basis to attach activity costs to a particular product or service.
Through the tracing of costs to product in this way ABC establishes less accurate costs for the product or service.
The identification of cost drivers provides information to management to enable them to take actions to improve the overall profitability of the company.
Operational analysis will provide information to management on how costs can be incurred and managed.

Answer(s): A,B,D

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CIMA CIMAPRO15-P01-X1-ENG Exam (page: 3) CIMA P1 Management Accounting Updated on: 07-Feb-2026

QUESTION: 11

QUESTION: 12

QUESTION: 13

QUESTION: 14

QUESTION: 15

CIMA CIMAPRO15-P01-X1-ENG Exam (page: 3)
CIMA P1 Management Accounting
Updated on: 07-Feb-2026