Most Recent CIMAPRO19-P02-1 Exam Dumps

Prepare for the CIMA P2 Advanced Management Accounting exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.

QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the CIMAPRO19-P02-1 exam and achieve success.

The questions for CIMAPRO19-P02-1 were last updated on Feb 21, 2025.

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Question No. 1

The performance report for the production manager of a company for the last month included the following.

1,000 direct labor hours were worked at a basic rate of pay of $10 per hour. 200 of these hours were worked during overtime for which a 30% overtime premium was paid. 80 of these overtime hours were to fulfill a customer order that had originally been planned for manufacture next month. The sales manager had agreed to bring forward the delivery of this order at the request of the customer. The remaining overtime hours were due to unexpected inefficiency of the workforce; this has been traced to poor supervision by a junior manager.

Material costs included the following:

$5,300 of material

AMaterial A is a commodity and, due to changes on the global market, the actual unit cost of this material for last month was 6% higher than had been expected
$5,250 of material B. The usage of material B last month was 5% higher than it should have been due to faulty workmanship on the production line.
What is the total value of the above costs that was controllable by the production manager?

A$20,610

B$19,810

C$20,910

D$20,360

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Correct Answer: A, A

Question No. 2

An organization is comprised of two divisions. One of the divisions manufactures a product that it sells both to an imperfect external market and to the other division.

The organization wishes to establish the most suitable basis for the transfer price for this product and is considering either a negotiated transfer price or a market-based transfer price.

Which of the following statements is correct?

AA negotiated transfer price could help to overcome the problem of establishing a single price for this external market.

BA single market price for all of the division's output can be determined easily whereas a negotiated transfer price may result in protracted negotiations.

CA negotiated transfer price will always result in goal congruence whereas this is not always true when using a single market-based transfer price.

DA market-based transfer price will ensure both divisional autonomy and goal congruence because part of the division's output is sold to the external market.

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Correct Answer: A

Question No. 3

A very large organization is financed by both debt and equity. It evaluates all projects on the basis of their net present value (NPV) using an organization wide weighted average cost of capital as the discount rate.

For a small project, which TWO of the following would affect the project's cash flows AND the discount rate?

ATaxation rates

BInflation rates

CDepreciation rates

DChanges in working capital

EThe project's terminal value

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Correct Answer: A, B

Question No. 4

A project with a 6 year life generates a positive net present value of $1,100. The discount rate is 8%.

To the nearest $, the equivalent annual benefit is:

A$5,085

B$238

C$177

D$693

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Correct Answer: B

Question No. 5

Which of the following is a correct description of the key features of net present value?

AIt adjusts the relevant cash flows of a project to reflect the time value of money. The discount rate used is always the company's weighted average cost of capital.

BIt adjusts the relevant cash flows of a project to reflect the time value of money. The discount rate used reflects the risk of the project.

CIt adjusts the relevant profits of a project to reflect the time value of money. The discount rate used reflects the risk of the project.

DIt adjusts the relevant cash flows of a project after the deduction of depreciation charges to reflect the time value of money. The discount rate used is always the company's weighted average cost of capital.

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Correct Answer: B

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