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Score Higher on Verified P1 | Management Accounting Exam Questions with Answers

Are you ready to take the Management Accounting? To learn P1 exam questions, smart security solutions, and move IT forward, you need the CIMA P1 Certification. Whether you're making security rules for the whole company or working on hard problems, CIMA makes sure you're ready for anything. Crack4sure offers study materials and practice problems covering the exam syllabus for CIMA Courses, including Management Accounting. Check for daily deals to get products that can help you pass.

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  • Exam Name: Management Accounting
  • Last Update: 30-Nov-2025
  • Questions and Answers: 260
  • Single Choice: 155 Q&A's
  • Multiple Choice: 48 Q&A's
  • Hotspot: 1 Q&A's
  • Drag Drop: 16 Q&A's

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P1 Questions and Answers

Question # 1

A company is considering whether to develop an overseas market for its products. The cost of developing the new market is estimated to be $250,000. There is a 70% probability that the development of the new market will succeed and a 30% probability that the development of the new market will fail and no further expenditure will be incurred.

If the market development is successful, the profit from the new market will depend on prevailing exchange rates. There is a 50% chance that exchange rates will be in line with expectations and a profit of $500,000 will be made. There is a 20% chance that exchange rates will be favorable and a profit of $630,000 will be made and a 30% chance that exchange rates will be adverse and a profit of $100,000 will be made.

The profit figures stated are before taking account of the development costs of $250,000.

Use a decision tree to decide whether the company should develop an overseas market for its products.

Select one correct answer.

A.

There is 70% chance that the project will fail.

B.

There is 65% chance that the project will fail.

C.

The overseas market should not be developed.

D.

The overseas market should be developed.

E.

There is a chance to make $506 000 profit.

F.

There may be a loss of $110 000.

Question # 2

Place the correct label against each item to categorise the cost of the item within the quality cost framework.

P1 question answer

Question # 3

Company LGF seeks to maximize profits and has a 'risk seeker' attitude when making decisions. The company has to choose between mutually exclusive projects. A range of possible profit outcomes has been estimated for each project along with their associated probabilities.

Company LGF would choose the project with the:

A.

Best possible outcome irrespective of the standard deviation.

B.

Highest expected value irrespective of the standard deviation.

C.

Highest standard deviation irrespective of the best possible outcome.

D.

Highest standard deviation irrespective of the expected value.

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This unique opportunity is available through our CIMA P1 testing engine that provides you with real questions like practice tests for pre-exam evaluation. The practice questions and answers have been taken from the previous Management Accounting exam questions and are likely to appear in the next exam too. To obtain a brilliant score, you need to keep practicing with practice questions and answers.

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