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CIMA Updated P2 Exam Questions and Answers by hubert

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CIMA P2 Exam Overview :

Exam Name: Advanced Management Accounting
Exam Code: P2 Dumps
Vendor: CIMA Certification: CIMA Management
Questions: 202 Q&A's Shared By: hubert
Question 16

Juan is looking to invest in the mining industry. He has narrowed his options down to two rival companies, both with sales of £200m. Company A has an EBIT of £10m whereas Company B has an EBIT of £14m.

This would suggest that Company B is the better investment but Juan is suspicious that Company B has more financial backing than Company A.

Which ratios will tell him which company will use his investment the best?

Options:

A.

Profit margin

B.

R.O.C.E

C.

Current ratio

D.

Quick ratio

Discussion
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Question 17

A manager must decide which one of three projects should be implemented. For each project the possible outcomes and their associated probabilities can be estimated reliably. The manager has decided to make the decision based solely on which project has the highest expected value of profit.

Which of the following statements are correct?

Select ALL that apply.

Options:

A.

The manager will select the project with the lowest standard deviation.

B.

The range of possible outcomes for each project is not important to the manager.

C.

The decision is characterized by uncertainty and the manager is risk seeking.

D.

The manager will select the project with the highest of all of the possible outcomes.

E.

The decision is characterized by risk and the manager is risk neutral.

Discussion
Question 18

A company has just completed the production of the first 16 batches of a product. A learning curve has been observed throughout. The following table gives further details.

Questions 18

To the nearest whole percentage, what rate of learning is implied?

Options:

A.

87%

B.

8%

C.

84%

D.

93%

Discussion
Question 19

A company has invested $500,000 in developing a new product and requires a return of 12% on this investment.

The company has researched the market and has set the selling price for the new product at $300 per unit. At this price, sales volume for next year is forecast to be 500 units. The forecast unit cost is $210.

What is the target cost gap per unit for the coming year?

Give your answer to the nearest whole $.

Options:

Discussion
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