Introduction of Cima P1 Exam!

The Chartered Institute of Management Accountants (CIMA) Professional Level exam (P1) is an online multiple-choice exam focused on financial accounting, budgeting, and reporting. It covers topics such as cost and management accounting, budgeting, decision making, and financial analysis. It also covers the use of technology to support decision making and the management of financial information.

What is the Duration of Cima P1 Exam?

The CIMA P1 exam is a two-hour computer-based exam consisting of 80 multiple-choice questions.

What are the Number of Questions Asked in Cima P1 Exam?

There are 80 multiple-choice questions on the CIMA P1 Exam.

What is the Passing Score for Cima P1 Exam?

The passing score for the CIMA P1 exam is 50 marks out of 100 marks.

What is the Competency Level required for Cima P1 Exam?

The Competency Level required for the CIMA P1 exam is Professional Level.

What is the Question Format of Cima P1 Exam?

The CIMA P1 exam consists of two types of questions: multiple-choice questions (MCQs) and case study questions. MCQs are typically used to test knowledge and understanding, while case study questions are used to assess a candidate’s ability to apply their knowledge and skills to a given scenario.

How Can You Take Cima P1 Exam?

The CIMA P1 exam can be taken both online and in a testing center. For the online version, candidates must register for the exam and then access the exam through the CIMA website. For the testing center version, candidates must register for the exam and then attend the exam at a designated testing center.

What Language Cima P1 Exam is Offered?

The CIMA P1 exam is offered in English.

What is the Cost of Cima P1 Exam?

The CIMA P1 exam costs £150 (plus VAT).

What is the Average Salary of Cima P1 Certified in the Market?

The average salary of Management Accounting certified professionals varies widely by role, region, and experience, because it depends on the job the certification is combined with. Check current listings in your market for an up-to-date figure.

Who are the Testing Providers of Cima P1 Exam?

The Chartered Institute of Management Accountants (CIMA) is the only organization that can provide testing for the CIMA P1 exam. CIMA is a professional body offering training and qualification in management accountancy and related subjects. They offer a range of exams, including the CIMA P1 exam, which is designed to assess the knowledge and skills of those seeking to become a Certified Management Accountant.

What is the Recommended Experience for Cima P1 Exam?

The recommended experience for the CIMA P1 exam is a minimum of two years of relevant work experience. This experience should be in a finance or accounting role, and should include the application of knowledge and skills in the areas of financial accounting and management accounting.

What is the Expected Retirement Date of Cima P1 Exam?

The Cima P1 exam is the current version of the Management Accounting exam, and Cima has not announced a retirement date for it. When Cima introduces a newer version, the retirement date for the older version is published on the Cima certification site.

What is the Difficulty Level of Cima P1 Exam?

The CIMA P1 exam is considered to be of moderate difficulty.

What is the Roadmap / Track of Cima P1 Exam?

The CIMA P1 certification roadmap consists of the following steps: 1. Complete the CIMA Professional Qualification. 2. Pass the CIMA P1 exam. 3. Complete the CIMA Professional Experience Requirement. 4. Pass the CIMA P2 exam. 5. Complete the CIMA Professionalism and Ethics module. 6. Pass the CIMA P3 exam. 7. Complete the CIMA Strategic Level Case Study. 8. Pass the CIMA P4 exam. 9. Complete the CIMA Strategic Level Integrated Case Study. 10. Pass the CIMA P5 exam. 11. Complete the CIMA Strategic Level Business Analysis module. 12. Pass the CIMA P6 exam. 13. Complete the CIMA Strategic Level Risk Management module. 14. Pass the CIMA P7 exam. 15. Complete the

What are the Topics Cima P1 Exam Covers?

Cima P1 exam covers the following topics: 1. Management Accounting: This topic covers the principles and practice of management accounting and the use of accounting information to support strategic decision-making. It also covers the use of management accounting techniques to support the evaluation of investment and operational decisions. 2. Financial Accounting: This topic covers the principles and practice of financial accounting and the preparation of financial statements. It also covers the use of financial accounting information to support the evaluation of investment and operational decisions. 3. Business Strategy: This topic covers the principles and practice of business strategy and the use of strategic analysis to support the evaluation of investment and operational decisions. 4. Business Economics: This topic covers the principles and practice of business economics and the use of economic analysis to support the evaluation of investment and operational decisions. 5. Business Law: This topic covers the principles and practice of business law and the use of legal analysis to support the evaluation of investment and

What are the Sample Questions of Cima P1 Exam?

1. What is the purpose of the CIMA P1 exam? 2. What topics are covered in the CIMA P1 exam? 3. How is the CIMA P1 exam structured? 4. What type of questions are included in the CIMA P1 exam? 5. How many questions are asked in the CIMA P1 exam? 6. What is the passing score for the CIMA P1 exam? 7. What resources are available to help prepare for the CIMA P1 exam? 8. What is the best way to approach studying for the CIMA P1 exam? 9. What type of calculator is allowed for the CIMA P1 exam? 10. What is the time limit for the CIMA P1 exam?

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Free P1 – Management Accounting Practice Test Question

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Showing 1–10 of 10 questions

Question 1

A company makes Product A and Product B. The production process for both products uses one type of material, one type of labour, and utilises one machine. All three of these resources will be limited in November. The company has performed a linear programming model and the constraints and optimal solution, to maximise contribution, are as follows:

Constraints:

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For November, which of the above constraints are binding, and which are non-binding?

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Answer is in the explanation below.

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Question 2

A company is choosing between three projects, Project P, Project Q and Project R using minimax regret as the criterion for the decision. The outcome from each project is dependent on future economic growth. If this is strong, returns will be P $5,000, Q $6,500 and R $7,200. If it is weak, returns will be P $3,500, Q $4,800 and R $4,200.

Place the correct figures into the table to show the maximum regret for each project.

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Answer is in the explanation below.

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Question 3

A company makes and sells three products A, B and C.

The selling prices and costs of the three products, using a traditional absoprtion costing system, are shown in the table below.

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The company has undertaken an analysis of overhead costs using activity-based costing (ABC).

The revised overhead costs for products A, B and C are $6, $32 and $55 respectively.

When comparing the figures obtained under the two costing methods, which of the following statements are true?

Select ALL that apply.

Select all that apply, then click Submit answer.

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Product B makes a profit under both methods, but the profit is lower using ABC.
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The product that is the most profitable under traditional absorption costing makes a loss under the ABC methodology.
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Product C is currently overpriced based on cost plus pricing and the selling price should be reduced.
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Activity-based costing results in a lower level of overhead costs for the company.
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Product A shows a profit under ABC but had appeared loss making under traditional absorption costing.

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Question 4

EFG is a small business making raspberry jam to sell at local markets. It has recently been approached by a major supermarket to produce a special order for the supply of lemon curd.

Two of the ingredients required are sugar and preservatives, both of which are in inventory.

The sugar has a historic cost of $4 per kg and a replacement cost of $5. It is in regular use for the production of the raspberry jam.

The factory has switched to organic processes and the preservatives are no longer required.

The historic cost of the preservatives was $3 per kg and the replacement cost is $2.50 per kg.

The preservatives can be re-sold to a local competitor for $1 per kg if they are not used in this order.

Which TWO of the following should be included in determining the relevant cost of the special order?

Select all that apply, then click Submit answer.

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Sugar at $4 per kg
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Sugar at $5 per kg
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Preservatives at $3 per kg
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Preservatives at $1 per kg
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Preservatives at $2.50 per kg

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Question 5

A time series (TS) is made up of two main components i.e. trend (T) and the seasonal variation (SV).

Which TWO of the following could be used to find the seasonal component of a trend?

Select all that apply, then click Submit answer.

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SV = TS - T
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SV = TS / T
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SV = TS + T
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SV = T / TS
○
SV = T - TS

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Question 6

A company develops computer software programs to meet each client's specific requirements. The management accountant is considering introducing a standard costing system.

Which THREE of the following are reasons that support the case for the company's introduction of a standard costing system?

Select all that apply, then click Submit answer.

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It will enable the company to make a direct comparison of costs for each program developed.
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It will enable the company to better focus on the quality of its service.
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It will provide a system of control.
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It will aid the budget setting process.
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It will simplify the work-in-progress valuation.

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Question 7

The simplex method has been used to determine the optimum output of products P, Q, R and S with constraints on resources J, K and L.

In the final simplex tableau, the figure in the product R row and the column for slack variable K is 80.

Which of the following statements is correct?

Select an option, then click Submit answer.

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For each additional unit of resource K available, the contribution would increase by $80.
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For each additional unit of resource K available, the output of product R would increase by 80 units.
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For each additional unit of product R produced, 80 additional units of resource K would be required.
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In the optimum solution, 80 units of resource K are unused.

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Question 8

A manager in your organisation says, "I have spare capacity and I need a unit cost as a basis for pricing a special one-off contract. You have provided me with a relevant cost of $6.50 per unit and a full production cost of $8.00 per unit. Please explain which unit cost I should use."

Which cost should be used in this decision and why?

Select an option, then click Submit answer.

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The relevant cost because it is the lower unit cost.
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The full production cost because it will be used in the financial accounting reporting system.
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The relevant cost because it represents the cash flows that will be affected if the contract is accepted.
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The full production cost because it is important to ensure that all costs are covered by the selling price.

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Question 9

A museum charges a reduced entrance fee for students in full-time education. The budgeted cost per customer is the same regardless of the entrance fee paid.

4,000 customers were budgeted to visit the museum during period 6, with 25% of customers paying the reduced fee.

3,000 customers visited the museum during period 6 and 1,000 of these paid the reduced entrance fee. Costs were as budgeted but the actual full-priced entrance fee was $2 higher than budgeted.

Which of the following statements is true?

Select an option, then click Submit answer.

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The sales mix variance is adverse and the sales quantity variance is adverse.
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The sales mix variance is zero and the sales quantity variance is favourable.
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The sales mix variance is adverse and the sales quantity variance is favourable.
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The sales mix variance is zero and the sales quantity variance is adverse.

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Question 10

The breakeven point in units, in a multiple product context, is calculated using which of the following formulae?

Select an option, then click Submit answer.

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Fixed costs / weighted average contribution to sales ratio
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Fixed costs / weighted average profit per unit
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Fixed costs / weighted average contribution per unit
○
Fixed costs / weighted average revenue per unit

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About the P1 Free Practice Test

This page holds a free practice test for the Management Accounting (P1) certification from Cima. You will find 10 free questions, drawn from the full Study4Pass practice set of 180 questions for this exam. The free sample includes 4 single-answer, 4 multiple-answer and 2 drag-and-drop questions — the same mix of formats you will meet in the full set. The questions follow the same topic balance as the real exam: Management Accounting, Financial Accounting, Business Strategy and Business Economics. The Chartered Institute of Management Accountants (CIMA) Professional Level exam (P1) is an online multiple-choice exam focused on financial accounting, budgeting, and reporting.

The target audience for the CIMA P1 Exam is finance professionals who are looking to gain a professional qualification in management accounting. The CIMA Professional Qualification is a three-level qualification and the prerequisite for the P1 exam is the CIMA Certificate in Business Accounting, which is the first level of the CIMA…

Certification: Management Accounting (P1)
Vendor: Cima
Free on this page: 10 practice questions with answers and explanations
Full practice set: 180 questions

Use the sample the way you would use the real thing: answer each question on your own first, then open the explanation and make sure you understand why the right answer is right. That habit — reasoning instead of memorizing — is what carries over to exam day. When a topic keeps tripping you up, that is your study plan telling you where to go next.

When you finish the sample, do not just count the score — read it. Every missed question names a topic, and the full set lets you train that topic on its own until it stops costing you marks. That loop of test, review and targeted practice is how this set is designed to be used, from the first free question to the last simulation.

Inside the full P1 practice set:

All 180 questions with answers and explanations
Timed Exam Simulation that mirrors the real exam pressure
Topic Training to drill one domain at a time
Ask AI for More Explanation on every question
Flag questions and review them before you finish

How to use this P1 free practice test

Pick an answer for each question and check it straight away — the correct answer and a full explanation appear under the question. There is no time limit and nothing to sign up for. When an explanation is not enough, use Ask AI: this is an AI-Enabled practice test, and Ask AI explains the concept behind the question in plain language. Ready for more? The full 180-question set adds a timed Exam Simulation mode, topic training for your weak areas, and a flagged-question review, so you can practise the way the real exam feels.

What to study for each P1 domain

Management Accounting — This topic covers the principles and practice of management accounting and the use of accounting information to support strategic decision-making.
Financial Accounting — This topic covers the principles and practice of financial accounting and the preparation of financial statements.
Business Strategy — This topic covers the principles and practice of business strategy and the use of strategic analysis to support the evaluation of investment and operational decisions.
Business Economics — This topic covers the principles and practice of business economics and the use of economic analysis to support the evaluation of investment and operational decisions.
Business Law — This topic covers the principles and practice of business law and the use of legal analysis to support the evaluation of investment and

P1 practice test — quick questions

Is this P1 practice test free?

Yes — the 10 questions on this page are completely free, with no signup and no payment details needed.

How many questions are in the full P1 set?

180 questions. The 10 free questions above are a sample of that full set, in the same style and topic balance.

Does the free test show the answers?

Yes — every question shows the correct answer with an explanation, and Ask AI can explain the concept behind a question in plain words if you want to go deeper.