Free CIMA CIMAPRA19-P02-1-ENG Exam Questions

Become CIMA Certified with updated CIMAPRA19-P02-1-ENG exam questions and correct answers

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Total 205 Questions | Updated On: Aug 20, 2026

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Question 1

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?

A : $11,900

B : $7,900

C : $63,400

D : $21,300

Answer: A

Question 2

GHY has two subsidiaries. GHY-Motor manufactures car engines and GHY-Build designs and assembles cars. In the car industry it is common for manufacturers to buy parts, including engines, from other manufacturers.
GHY has granted GHY-Motor and GHY-Build full autonomy. GHY-Build is considering using an engine from another company for a new model that it is designing. GYY-Motor has a suitable engine, but it charges more than GHY-Build's preferred supplier.
Which of the following statements is correct? Select ALL that apply.

A : Y should consider permitting GHY-Motor to charge part of the selling price on engines sold to GHY-Build to head office.

B : rcing GHY-Motor to grant a discount to GHY-Build could lead to dysfunctional behavior.

C : There could be significant non-financial issues associated with GHY-Build's decision to buy another engine.

D : rent companies should never grant subsidiaries full autonomy on matters such as intra-group sales.

E : threat of dysfunctional behavior is largely theoretical and managers can be trusted to maximise shareholder wealth.

Answer: A,B,C

Question 3

How does beyond budgeting NOT help to resolve the weaknesses of traditional budgeting? Select ALL that apply.

A : nagers are set goals and targets to achieve rather than abiding by strict budgets and variances.

B : nagers have a much larger scope of business goals that when achieved, will increase shareholder value.

C : nagers are given more freedom and control over their business units under Beyond budgeting.

D : nagers focus on keeping costs low in the short term to ensure maximised profits.

E : nagers are given incentives to meet or undercut budgets.

F : nagers are encouraged to designate responsibility to others to lessen their workload so they may concentrate on important tasks.

Answer: A,D

Question 4

Firefighters risk serious and potentially fatal accidents whenever they attend an incident.
Which of the following statements is correct?

A : risk of serious accidents should be accepted in all but the most extreme incidents.

B : risk of serious accidents should always be accepted because that is what firefighters are paid to do.

C : risk of serious accidents should be avoided because the risk has a high probability and a high impact.

D : ery incident should be the subject of a detailed and thorough risk assessment before the firefighters are permitted to respond.

Answer: A

Question 5

In order to remain competitive an organization wishes to achieve cost savings for one of its existing products.
Which of the following correctly describes methods which the organization can use to achieve these cost savings?
Select ALL that apply.

A : nctional analysis is carried out only on existing products and is concerned only with minimizing the cost of the originally defined functions of a product.

B : lue engineering is a fundamental rethinking and radical redesign of an organization's existing processes.

C : Target costing is continuously setting new stretch targets while the product is in production.

D : lue analysis is examining a product's costs in order to achieve its purpose at a reduced cost while maintaining its reliability and quality.

E : izen costing is seeking to make cost savings by continuously making small incremental cost reductions while the product is in production.

Answer: A,D

Page: 1 / 41

Total 205 Questions | Updated On: Aug 20, 2026

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