P1 Exam Dumps - CIMA Operational Questions and Answers

Company XPP sells a perishable product that has to be produced each day in anticipation of the following day's sales.

Any product remaining unsold at the end of the day following production is wasted.

The payoff table below shows the daily profit or loss depending on the amounts produced and sold.

A new ordering system is being discussed with customers.

The new system would require customers to order in advance to enable production each day of the following day's sales quantity, thus eliminating waste.

What is the expected increase in average daily profit if the new system is accepted by customers?

Give your answer as a whole number.

Place the components of the time series next to the example about the impact on sales that they best represent.

8fb9be1c-b0d5-4acb-8cfb-f4b4426e641B. The primary objective of Company A is to maximise profit. It is now deciding on the optimum production mix for the next period and has one limited production resource.

The production mix decision should be based on:

Which of the following distinguishes risk from uncertainty?

RS is a travel company providing daily tours of a major European capital city. The market is highly competitive and RS has commissioned some market research to help with the pricing decision for a new tour. The research identified the probability of three possible market conditions and the number of tickets that would be sold each day at three different price levels.

Demonstrate, using a decision tree and based on expected value, which ticket price RS should choose.

A manufacturing company has a capacity of 10,000 units. The flexed production cost budget of the company is as follows:

All costs are either fixed, variable or semi-variable.

What is the budgeted total production cost if the company operates at 85% capacity?

Calculate the sensitivity of the investment decision to a change in the annual fixed costs.

By how much should the present value of the fixed cost increase, before this project is not viable?

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

What is the fixed production overhead efficiency variance?

Give your answer as a whole number.

Place the type of budget or cost against its definition.