Pass the CIMA Operational P1 Questions and answers with ExamsMirror

Each finished unit of product G contains 2 litres of ingredient L. Losses during production are 10% of input of ingredient L. Budgeted data for next period are as follows:

The budgeted purchases of ingredient L for next period are:

Which costing method, used in just-in-time (JIT) production systems, attaches cost directly to output rather than following the flow of product through the production process?

Reported profits using activity-based costing (ABC) may be different from reported profits using marginal costing because ABC:

A company manufactures a single product. The following budgeted data applies to month 6:

What was the budgeted fixed production overhead for month 6?

Give your answer to the nearest whole $ (in '000s).

GP is launching a new product. The annual forecast costs are as follows:

What is the expected value of the total costs?

Give your answer to the nearest whole $.

XY manufactures a range of products and uses an activity based costing system.

Budgeted production of Product B is 7,500 units.

Overheads have been identified by activity and related to appropriate cost drivers.

Product B is produced in batches of 250 units. Machines have to be reset after every batch and quality inspections are carried out on every third batch.

What is the total overhead cost per unit of Product B?

Give your answer to two decimal places.

What type of budget is prepared on an annual basis taking current year operating results and adjusting them for expected growth and inflation?

A manufacturing company is preparing the production budget for the forthcoming year.

The following budgeted information has already been obtained:

How many units will need to be produced for the forthcoming year?

Give your answer to the nearest whole number.

A master budget comprises which of the following?

A company produces trays of pre-prepared meals that are sold to restaurants and food retailers. Three varieties of meals are sold: economy, premium and deluxe.

Calculate, for the original budget, the budgeted fixed overhead costs, the budgeted variable overhead cost per tray and the budgeted total overheads costs.