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: Oct 27, 2026

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Question 1

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

The company is using target costing to ensure that it achieves a contribution of 40% of the market selling price.
In order to achieve the target cost, by how much does the company need to reduce the variable cost per unit?

A : $ 2.10

B : $ 0.50

C : $ 1.40

D : $ 2.60

Answer: B

Question 2

A large company that sells a single product has many customers. The contribution per unit of the product is $40. Data for the company as a whole are given below.

Using customer profitability analysis, what is the total annual profit for this customer?

A : $1,660,000

B : $1,780,000

C : $1,460,000

D : $2,340,000

Answer: A

Question 3

When considering a capital investment, relevant costs for decision making have which THREE of the following features?

A : ey are future costs.

B : ey are committed costs.

C : ey are incremental costs.

D : They are unavoidable costs.

E : ey are cash flows.

Answer: A,C

Question 4

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 5

Which of the following statements is correct in respect of the key feature of dual pricing?

A : selling price recorded by the selling division is higher than the cost recorded by the receiving division.

B : ternal customers are offered trade discounts depending on the number of units they purchase.

C : ternal transfers are priced at marginal cost and a lump sum payment is made subsequently to contribute to fixed costs.

D : ternal customers are charged a lower price than external customers to reflect savings in distribution costs.

Answer: A

Page: 1 / 41

Total 205 Questions | Updated On: Oct 27, 2026

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