Free CIMA CIMAPRO19-P01-1-ENG Practice Exam Questions and Answers 2026

Information about a company's only two products is as follows:The revenue from the products must be in the constant mix of 2U:3V. Budgeted monthly sales revenue is $110,000.Fixed costs are $23,095 each month.To the nearest $10, what is the budgeted monthly margin of safety in terms of sales revenue?

A company is preparing its annual budget and is estimating the number of units of Product A that it will sell in each quarter of year 2. Past experience has shown that the trend for sales of the product is represented by the following relationship:y = a + bx wherey = number of sales units in the quarter a = 10,000 units b = 3,000 units x = the quarter number where 1 = quarter 1 of year 1Actual sales of Product A in Year 1 were affected by seasonal variations and were as follows:Quarter 1:14,000 units Quarter2: 18,000 units Quarter 3: 18,000 units Quarter 4: 20,000 unitsCalculate the expected sales of Product A (in units) for each quarter of year 2, after adjusting for seasonal variations using the additive model.

The standard production cost of making a product is as follows:What is the fixed production overhead capacity variance?

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 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?