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CIMA Updated P2 Exam Questions and Answers by niya

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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: niya
Question 20

A company has a 31 December year end and pays corporation tax at a rate of 30%. Corporation tax is payable 12 months after the end of the year to which the cash flows relate. The company can claim tax allowable depreciation at a rate of 25% reducing balance. It pays $1 million for a machine on 31 December 20X4. The company's cost of capital is 10%.

What is the present value of the benefit of the first portion of tax allowable depreciation?

Options:

A.

$250,000

B.

$227,500

C.

$75,000

D.

$68,175

Discussion
Question 21

An organization's transfer pricing system involves:

• The transferring division receiving $20 per unit; an amount equal to its variable costs.

• The receiving division paying an additional $30,000 every month to the transferring division.

Which transfer pricing system is the organization using?

Options:

A.

Dual transfer prices

B.

Two part tariff

C.

Cost-plus

D.

Variable cost plus opportunity cost

Discussion
Question 22

In accordance with a just-in-time (JIT) philosophy, which of the following is regarded as a value added activity?

Options:

A.

Inspecting raw material deliveries

B.

Moving work in progress around production facilities

C.

Holding inventory

D.

Dispatching products to customers

Discussion
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Question 23

There is a 60% probability of a project yielding a positive net present value (NPV) of $280,000 and a 30% probability of it yielding a positive NPV of $140,000.

The only other possible outcome is that the project will yield a negative NPV of $160,000.

What is the expected value of the project's NPV?

Options:

A.

$194,000

B.

$210,000

C.

$280,000

D.

$260,000

Discussion
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