Expert Answers to CIMA Exam P2 Questions

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CIMA Management Advanced Management Accounting

Advanced Management Accounting

Last Update Jan 31, 2026
Total Questions : 202

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Questions 2

Endure Co. makes 1,000 units ofX and 2,000 units of Y.

Costs for X: Material $4, labour $8, direct overhead $2, fixed cost $4.

Costs for Y: Material $9, labour $9, direct overhead $4, fixed cost $6.

Selling price for X and Y are S19 and $25 respectively. Another company can sell ready made product X and product Y's to Endure Co, this company sells X at $12 and Y at $21. Advise Endure Co. on what would be the

most cost effective way to source products X and Y.

Options:

Endure should buy X and Yfrom the other supplier.

Endure should buy X but produce Y themselves.

Endure should produce both X and Y themselves.

Endure should buy Y but produce X themselves.

Discussion 0

Questions 3

Which of the following is a key objective when agreeing a basis for setting transfer prices?

Options:

Promoting goal congruence

Increasing market share

Rewarding profit centre managers

Allocating overhead costs effectively

Discussion 0

Questions 4

A company is investing $150,000 in a project which will yield an annual cash inflow of $40,000 for eight years. The company's cost of capital is 10%.

To the nearest $100, what is the project's equivalent annual net present value?

Options:

$11,900

$7,900

$63,400

$21,300

Discussion 0

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Questions 5

A company manufactures and sells a range of products. Relevant data for one unit of a particular product are as follows.

Questions 5