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CIMA P2 Dumps

Exam Code:
P2
Exam Name:
Advanced Management Accounting
Last Update: May 17, 2024
202 Questions with Explanation
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Advanced Management Accounting Practice Questions

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Advanced Management Accounting Questions and Answers

Questions 1

A company is considering investing $150,000 in a project which will generate the following contributions during the first three years.

Tax depreciation allowance is 25% each year of the reducing balance.

The taxation rate is 30% of taxable profits and tax is payable in the year after that in which it arises.

To the nearest $10, what is the forecast total project cash flow in year 3?

Options:

A.

$82,840

B.

$74,400

C.

$85,650

D.

$71,430

Questions 2

An organization wishes to achieve cost reductions for a product it already has in production without affecting the customer's perception of the product.

It has decided to carry out a systematic examination of the factors affecting the cost of the product in order to identify ways of achieving the specified purpose at lower cost while maintaining the required standard and quality.

Which of the following correctly identifies the activity that the organization is undertaking?

Options:

A.

Value analysis

B.

Kaizen costing

C.

Standard costing

D.

Process innovation

Questions 3

Which TWO of the following statements are correct?

Options:

A.

It is worthwhile for a company to sell further units when the marginal revenue is greater than the marginal cost.

B.

Price is the only factor affecting the demand for products and services.

C.

Premium pricing is possible when there is a measure of product or service differentiation.

D.

Loss leadership pricing is appropriate for a new product which is not part of a range of products.

E.

Demand functions can be predicted accurately and the relationship between price and quantity demanded is always constant.