P2 Practice Questions
Advanced Management Accounting
Last Update 1 day ago
Total Questions : 202
Dive into our fully updated and stable P2 practice test platform, featuring all the latest CIMA Management exam questions added this week. Our preparation tool is more than just a CIMA study aid; it's a strategic advantage.
Our free CIMA Management practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about P2. Use this test to pinpoint which areas you need to focus your study on.
A positive net present value (NPV) has been calculated for a project to launch a new product. An additional calculation is required to identify the sensitivity of the NPV to changes in the forecast total sales volume.
The present value of which of the following would be used in the calculation?
An 80% learning curve will apply to the production of a new product. The first unit will require 120 labor hours. The labor rate is $11 per hour.
To the nearest $1, the expected total labor cost for the first 4 units is:
Which TWO of the following are reasons why cost-based approaches to transfer pricing are often used in practice?
A company makes three products, E, F and
G.
Total overheads for the year are expected to be $1.2 million, with the following split between cost pools:Cost driver information has been estimated as follows:
The company plans to make 10,000 units of product E in the year, with an expected direct cost of $0.60 per unit. This annual production of product E is expected to require 20 quality inspections, 28 purchase requisitions, and 400 kilogrammes of materials.
What is the overhead cost per unit of product E?
A manufacturing company is in the process of introducing just in time (JIT) and total quality management (TQM) into every aspect of its value chain.
Which TWO of the following are appropriate changes to make to the support activities in the organization's value chain?
A group consists of two divisions, Alpha and Beta, both of which are profit centers. Alpha sells a product to the external market and also sells it as an intermediate product to Beta.
Beta then processes further before selling the final product to the external market. The current group transfer pricing policy requires Alpha to charge Beta with the variable cost of production.
Which of the following statements is valid?
Company X is considering the launch of a new product. In order to compete in the market the selling price must be $100 per unit. Company X aims to achieve a sales margin of 25 per cent.
Direct materials cost is $75 for each unit. It takes 15 minutes for workers to assemble each unit. Workers are paid $16 per hour. 5 per cent of paid time is idle. Overheads are absorbed at $6.50 per unit.
What is the value of any cost gap between the forecast total cost and the target cost?
Which THREE of the following are advantages of changing from a 'top-down' to a 'bottom-up' (participative) style of budgeting?
Place each performance measure against the correct perspective of the Balanced Scorecard for a company that operates a chain of hotels.
Which of the following criticisms relate to traditional budgeting methods and which relate to the 'beyond budgeting' approach?
