Cima P1
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What is Management Accounting ?
 Management accountants play a vital role in managing business
opportunities. They inform the strategy and help secure the
future of your business. CIMA management accountants redefine
how business is done.
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How CIMA Benefit Your Business
 Communication – knowing what information management
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needs and explaining the numbers to non-financial managers.
Planning – using accounting techniques to plan and budget.
Risk - The application of analytical skills to observe business
processes end end a pair identify and manage risks.
Strategy – Using the insight from analysis to help formulate
business strategy to create wealth and shareholder value.
Analysis - Understanding the history behind numbers and use
it to make business decisions
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Management Accounting Exam Test
 Test management accounting is not easy to pass. Before trying
to take the exam you must have a complete knowledge of this.
If you want to become a Certified Management Accountant
then you can get help from real test materials of Exams4sure
for Management Accounting Exam Here are the latest
questions and answers for Management Accounting review.
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Question No 1:
 Which phrase best describes the current role of the managerial accountant ?
 A. Managerial accountants facilitate the decision-making process within an
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organization.
B. Managerial accountants prepare the financial statements for an organization.
C. Managerial accountants make the key decisions within an organization. D.
Managerial accountants are primarily information collectors.
D. Managerial Accountants are solely staff advisors in an organization.
E. Managerial accountants are primarily information collectors.
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Question No 2:
 An example of qualitative data is ?
 A. Net income
 B. Product cost
 C. Customer satisfaction
 D. Net worth
 E. Inventory cost
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Question No 3:
 Product and service costing information is prepared for?
 A. Manufacturing companies without inventory.
 B. Manufacturing companies with inventory.
 C. Service providers.
 D. Merchandising companies.
 E. Each of the other four answers.
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Question No 4:
 Manufacturing costs typically consist of?
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A. Direct materials direct labor and administrative costs.
B. Direct materials direct labor and manufacturing overhead.
C. Production and shipping costs.
D. Direct materials direct labor marketing and administrative
costs.
 E. Production and marketing costs.
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Question No 5:
 In comparison to the traditional manufacturing environment
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overhead costs in a JIT environment all the following are true except:
A. Labour need not be tracked to the product.
B. Are more easily tracked to products.
C. Are frequently direct in nature.
D. Most of the costs are likely to be indirect in nature.
E. Include rent insurance and utilities.
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Question No 6:
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As production increases within the relevant range
A. Variable costs will vary in total.
B. Fixed costs will vary in total.
C. Variable costs will vary on a per unit basis.
D. None of the other four answers is true.
E. Fixed and variable cost stay the same in total.
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Question No 7:
 You are given the cost and volume information below: Volume
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Cost 1 unit 15 10 units 150 100 units 1500 What type of a cost
is given?
A. Rent cost
B. Fixed cost
C. Variable cost
D. Mixed cost
E. Step cost
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Question No 8:
 Which of the following statements regarding graphs of fixed and
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variable costs is true
A. Variable costs can be represented by a straight line where costs are
the same for each data point.
B. Fixed and Variable costs are curvilinear form above zero on the “Y”
axis.
C. Variable costs are zero when production is equal to zero.
D. Fixed costs can be represented by a straight line starting at the
origin and continuing through each data point.
E. Fixed costs are zero when production is equal to zero. D. Variable
costs are zero when production is equal to zero.
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Management Accounting
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