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Exam Review

Key Facts: CIMA P1 Exam

~60

Objective Test Questions

Pearson VUE CIMA

90 min

Exam Duration

Pearson VUE CIMA

100/150

Scaled Score to Pass

CIMA Objective Tests

30%

Cost Accounting Weighting

Operational Blueprint 2026-2027

On demand

Booking Availability

Pearson VUE CIMA

4 areas

Syllabus Sections

Operational Blueprint 2026-2027

CIMA P1 Management Accounting is an Operational level objective test taken on demand at Pearson VUE, with about 60 questions in 90 minutes (multiple-choice, number-entry, and drag-and-drop). The 2026-2027 blueprint weights four areas: Cost Accounting for Decision and Control 30%, Budgeting and Budgetary Control 25%, Short-term Commercial Decision Making 30%, and Dealing with Risk and Uncertainty in the Short Term 15%. CIMA does not publish a fixed raw passing percentage; results are reported as a scaled score out of 150, and a score of 100 represents a pass.

Sample CIMA P1 Practice Questions

Try these sample questions to review concepts for the CIMA P1 exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1A company uses absorption costing. Fixed production overhead is $200,000 and budgeted output is 50,000 units. Actual output is 48,000 units. What is the fixed production overhead volume variance?
A.$8,000 adverse
B.$8,000 favourable
C.$2,000 adverse
D.$4,000 favourable
Explanation: The overhead absorption rate is $200,000 / 50,000 = $4 per unit. The volume variance is (actual output - budgeted output) x OAR = (48,000 - 50,000) x $4 = $8,000 adverse, because fewer units than budgeted were produced, under-absorbing fixed overhead.
2Under marginal costing, how is fixed production overhead treated when valuing closing inventory?
A.Included at the full absorption rate per unit
B.Included only at the variable element
C.Excluded entirely from inventory valuation
D.Included at the budgeted, not actual, rate
Explanation: Marginal costing values inventory at variable production cost only. Fixed production overhead is treated as a period cost and charged in full against the period's profit, so it is excluded from inventory valuation entirely.
3When production exceeds sales in a period, how will absorption costing profit compare with marginal costing profit?
A.The two profits will be equal
B.It depends on the sales price
C.Absorption profit will be lower
D.Absorption profit will be higher
Explanation: When production exceeds sales, inventory increases. Absorption costing carries fixed overhead forward in the rising closing inventory, deferring that cost to a future period, so reported profit is higher than under marginal costing, which expenses all fixed overhead now.
4Activity-based costing (ABC) assigns overhead to products primarily using which of the following?
A.Direct labour hours only
B.The proportion of direct material cost
C.A single plant-wide volume-based rate
D.Cost drivers that cause the activities
Explanation: ABC traces overhead through activities to products using cost drivers that genuinely cause the activity cost, such as the number of set-ups or purchase orders. This gives more accurate product costs than a single volume-based rate when overheads are driven by diversity and complexity rather than output volume.
5A product passes through a process with normal loss of 10% of input. 5,000 litres are input at a total cost of $47,500, and normal loss has a scrap value of $1 per litre. Actual output equals expected output (no abnormal loss or gain). What is the cost per litre of good output?
A.$10.56
B.$9.00
C.$9.50
D.$10.44
Explanation: Normal loss = 10% x 5,000 = 500 litres, leaving 4,500 good litres expected. Net process cost = $47,500 less the scrap value of normal loss (500 x $1 = $500) = $47,000. Cost per good litre = $47,000 / 4,500 = $10.44.
6In process costing, an abnormal gain arises when:
A.There is no scrap value for losses
B.Output equals input exactly
C.Actual loss is greater than normal loss
D.Actual loss is less than normal loss
Explanation: An abnormal gain occurs when the actual loss is less than the expected normal loss, meaning the process performed better than anticipated. The abnormal gain units are valued at the same cost per unit as good output and credited to the process account.
7A joint process produces two products, X and Y. Joint costs of $60,000 are apportioned using the physical units basis. 3,000 kg of X and 1,000 kg of Y are produced. How much joint cost is apportioned to product X?
A.$45,000
B.$30,000
C.$15,000
D.$48,000
Explanation: Using the physical units basis, joint cost is split in proportion to output quantities. X represents 3,000 / (3,000 + 1,000) = 75% of total output, so X receives 75% x $60,000 = $45,000.
8Which costing approach focuses on reducing a product's cost over its design and production life to meet a cost target derived from a competitive market price and required margin?
A.Absorption costing
B.Throughput costing
C.Standard costing
D.Target costing
Explanation: Target costing starts from a market-determined selling price, deducts the required profit margin to set an allowable target cost, then drives cost reduction (often at the design stage) to close any cost gap. It is market-led rather than cost-plus.
9A company operating throughput accounting has a bottleneck machine. Product A has a throughput (sales less material cost) of $30 and uses 2 hours on the bottleneck. Product B has a throughput of $24 and uses 1 hour. To maximise profit, which product should be prioritised?
A.Both equally
B.Product A, because it uses more bottleneck time
C.Product A, because its total throughput is higher
D.Product B, because its throughput per bottleneck hour is higher
Explanation: Throughput accounting ranks products by throughput per unit of the bottleneck resource. A earns $30 / 2 = $15 per hour; B earns $24 / 1 = $24 per hour. B generates more throughput per scarce bottleneck hour, so it should be prioritised.
10The throughput accounting ratio (TPAR) is calculated as:
A.Throughput per hour divided by factory cost per hour
B.Contribution divided by sales
C.Sales divided by total assets
D.Material cost divided by throughput
Explanation: The TPAR equals the throughput return per factory hour divided by the factory (operating) cost per factory hour. A TPAR greater than 1 indicates the product earns more throughput per hour than it costs to run the factory, so it is worth producing.

About the CIMA P1 Exam

CIMA P1 Management Accounting is an Operational level objective test in the CGMA Professional Qualification, covering cost accounting for decision and control, budgeting and budgetary control, short-term commercial decision making, and dealing with risk and uncertainty in the short term.

Exam sponsor: AICPA & CIMA / Pearson VUE. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

60 questions

Time Limit

90 minutes

Passing Score

Scaled score of 100 out of 150

Exam / Certification Fees

P1 objective test entry fee set by CIMA, varying by country and registration tier

Exam sponsor website

Reported exam pass rate: not-published. CIMA reports P1 objective test results as a scaled score out of 150, with 100 required to pass, and does not routinely publish a per-window pass rate. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

30%

Cost Accounting for Decision and Control

Costing methods, absorption and marginal costing, activity-based costing, process and joint costing, standard costing, variance analysis, throughput accounting, and modern cost management.

25%

Budgeting and Budgetary Control

Budget preparation, the principal budget factor, fixed, flexible, rolling, zero-based and activity-based budgets, cash budgeting, forecasting, learning curves, and behavioural aspects.

30%

Short-term Commercial Decision Making

Relevant costing, cost-volume-profit analysis, break-even, limiting factors, linear programming, make-or-buy, special orders, further processing, shutdown decisions, and pricing.

15%

Dealing with Risk and Uncertainty in the Short Term

Expected values, payoff tables, decision rules, decision trees, the value of perfect and imperfect information, sensitivity analysis, and measures of risk such as standard deviation.

Preparing for the CIMA P1 Exam

What You Need to Know

  • Passing score: Scaled score of 100 out of 150
  • Exam length: 60 questions
  • Time limit: 90 minutes
  • Exam / certification fees: P1 objective test entry fee set by CIMA, varying by country and registration tier Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CIMA P1: Suggested Study Strategy

1Allocate study time to the four areas using the 30/25/30/15 weightings, prioritising cost accounting and decision making.
2Practise calculations such as variances, break-even, and expected values until they are quick and reliable under time pressure.
3Use the CIMA objective test tutorial at Pearson VUE to get comfortable with number-entry and drag-and-drop question styles.
4Build an error log that separates calculation slips from conceptual misunderstandings.
5Time full 60-question mock exams in 90 minutes to rehearse pacing of about 90 seconds per question.
6Do not memorise a raw percentage pass mark; focus on consistent mastery across all four syllabus areas to reach the scaled score of 100.

Frequently Asked Questions

How many questions are on the CIMA P1 exam?

CIMA P1 is an objective test with approximately 60 questions answered in a single 90-minute computer-based session. Question styles include multiple-choice, number-entry, and drag-and-drop items.

What is the CIMA P1 passing score?

CIMA reports objective test results as a scaled score out of 150 rather than a raw percentage. A scaled score of 100 represents a pass, which levels results across different versions of the exam.

How long is the CIMA P1 exam?

The P1 objective test lasts 90 minutes. It is taken on demand at Pearson VUE test centres or through approved online proctoring, with provisional results typically available immediately.

What topics are covered in CIMA P1?

The 2026-2027 Operational level blueprint weights P1 as Cost Accounting for Decision and Control 30%, Budgeting and Budgetary Control 25%, Short-term Commercial Decision Making 30%, and Dealing with Risk and Uncertainty in the Short Term 15%.

Is CIMA P1 a computational exam?

Yes. P1 is computational and concept-driven, testing costing, variance analysis, budgeting, break-even, relevant costing, and expected values, so candidates should practise calculations under timed conditions.

Where does CIMA P1 fit in the CGMA qualification?

P1 is one of three Operational level objective tests, alongside E1 and F1, that lead into the Operational Case Study. Together they form the Operational level of the CGMA Professional Qualification.