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CIMA P2 Exam Dumps

CIMA P2 Exam Dumps

Advanced Management Accounting

Total Questions : 202
Update Date : March 06, 2024
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P2 Exam Dumps


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CIMA P2 Sample Questions

Question # 1

SDF is a newly-established production company that is experiencing high staff turnover in its factory. The production department is studying the manufacturing process and its associated learning curve.Which of the following statements is correct?  

A. SDF's staff turnover will disrupt the observation and measurement of the learning curve. 
B. SDF's staff turnover will affect the learning curve. 
C. SDF's rapid staff turnover means that knowledge of the learning curve has little value. 
D. SDF can use the learning curve to determine labor budgets for the remainder of the first year of operation.



Question # 2

Which of the following activities are included within activity based management (ABM)?1. Cost reduction 2. Product design decisions 3. Variance analysis 4. Operational control 5. Performance evaluation  

A. 3, 4 and 5 only. 
B. 1, 2 , 4 and 5 only. 
C. 1, 3, 4 and 5 only 
D. All of them. 



Question # 3

ZZZ is a divisionalised company that uses the balanced scorecard approach to monitor divisional performance. Each measure on the scorecard is classified as green (if they are better than expected), amber (if expectations have been met) or red (if they are poorer than expected).The Southern Division's scorecard shows that 90% of the measures are amber, 3% are green and 7% are red. All of the red classifications are listed under the Learning and Growth perspective and have arisen largely because the division has lost a lot of staff to a major competitor who offered a better rate of pay. Which THREE of the following statements are correct?  

A. The Southern Division's financial performance is acceptable. 
B. The numbers for the measures that have been classified as red and green are not necessarily indicative of overall performance. 
C. The Southern Division's managers should be asked to provide a commentary on the scorecard. 
D. The Southern Division's managers should be reprimanded for having only a small proportion of green classifications. 
E. The Southern Division's managers should be reprimanded for having red classifications. 



Question # 4

Firefighters risk serious and potentially fatal accidents whenever they attend an incident.Which of the following statements is correct?  

A. The risk of serious accidents should be accepted in all but the most extreme incidents. 
B. The risk of serious accidents should always be accepted because that is what firefighters are paid to do. 
C. The risk of serious accidents should be avoided because the risk has a high probability and a high impact. 
D. Every incident should be the subject of a detailed and thorough risk assessment before the firefighters are permitted to respond. 



Question # 5

SDF makes cars. Demand for one of SDF's most popular models has declined because of a longrunning television program. SDF's car is driven by a villainous character in the program and that has created such a negative association that sales have declined so significantly that SDF is planning to discontinue production.Which of the following statements is correct? Select ALL that apply.  

A. Business risks can arise from unexpected events. 
B. The use of a product in a television program can create upside risks. 
C. SDF should have considered the possibility that sales of this car could be affected by public perception, even though the car's practical attributes are unchanged. 
D. SDF's board should accept full responsibility for permitting this to happen. 
E. SDF's sales department should have prevented the television production company from buying the car. 



Question # 6

An airline prides itself on using highly reliable aircraft that are maintained to the highest possible standard and that its flight crews are arguably the best in the industry. Despite that, the directors accept that there remains a slight possibility that there will be a fatal accident. Which THREE of the following statements are correct? 

A. The airline appears to be behaving responsibly. 
B. It is unlikely that any airline could totally eliminate all possibility of a fatal accident. 
C. The airline's directors can justify their behavior on the basis that they insist on exceeding all relevant statutory and industry safety standards. 
D. Fatal air accidents can be justified on the basis that some risk is inevitable. 
E. The airline should cease operations in order to eliminate the risk of a fatal accident. 



Question # 7

Which of the following statements is correct? 

A. Risk can be quantified and probabilities can be assigned reliably to the possible outcomes. 
B. Uncertainty cannot be quantified and probabilities can be assigned reliably to the possible outcomes. 
C. Risk cannot be quantified and probabilities cannot be assigned reliably to the possible outcomes. 
D. Uncertainty can be quantified and probabilities can be assigned reliably to the possible outcomes. 



Question # 8

A manufacturing company has just developed a new product and must now determine the most appropriate pricing strategy for its initial launch.The product will initially be unique because it will include highly desirable features that no competitive product offers. Its development has involved substantial expenditure and the company wishes to recover this as soon as possible. The product's uniqueness is expected to last for only six months before a competitor launches a similar product. It is expected that the competitor will avoid any significant development costs by reverse engineering the company's own product. At that point, to remain competitive, the company must ensure that its selling price matches that of the competitor. Which of the following pricing strategies would be most suitable for the initial launch of the company's product?  

A. Market skimming 
B. Penetration pricing 
C. Dual pricing 
D. Own label pricing 




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