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

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

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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