Cima pass4success newly Released P2 Exam Pdf by Fallon q92 vce pdf

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

Question 8

LL produces an item, the Z, for which the demand curve is estimated to be:

P = 10 - 0.0001Q

where, P is the unit price in $ and Q is the annual sales volume in units;

Marginal revenue (MR) = 10 - 0.0002Q

The variable cost of producing the Z is $2 per unit. The annual fixed costs of production are $110,000.

What is the profit maximizing output level?

Options:

50,000 units

45,000 units

40,000 units

35,000 units

Discussion

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Question 9

A risk averse decision maker will:

Options:

accept a risk if it is accompanied by a satisfactory potential return.

avoid all risks.

accept a risk if the expected value of the potential outcomes is positive.

always select the course of action that has the lowest risk.

Discussion

Question 10

Which of the following are TRUE about the theory of constraints? Select ALL that apply.

Options:

Each resource should be put to its most profitable use

Relieve all the constraints in a system simultaneously to ensure optimality

Ensure that each constraint is being used efficiently

Relieve constraints until the cost of relieving the last constraint exceeds the benefit

Discussion

Question 11

A cost centre manager's performance is monitored based on a comparison of actual and budgeted cost. A summary performance report for the latest period is shown below.

Questions 11