CIMA Exam CIMAPRO19-P01-1 Topic 10 Question 22 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 22
Topic #: 10

TP makes wedding cakes that are sold to specialist retail outlets which decorate the cakes according to the customers' specific requirements. The standard cost per unit of its most popular cake is as follows:

The general market prices at the time of purchase for Ingredient A and Ingredient B were $23 per kg and $20 per kg respectively. TP operates a JIT purchasing system for ingredients and a JIT production system; therefore, there was no inventory during the period.

What was the material price planning variance for ingredient B?

AThe material price planning variance -- Ingredient B was $54 000 F

BThe material price planning variance -- Ingredient B was $64 000 F

CThe material price planning variance -- Ingredient B was $57 000 F

DThe material price planning variance -- Ingredient B was $59 000 F

Show Suggested Answer

Suggested Answer: A

by Joni at May 08, 2022, 09:31 AM

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