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: Apr 29, 2026

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Question 1

Which of the following statements is TRUE about the activity based costing system when compared to absorption costing method?

A : is easier to administer than an absorption costing system

B : will be less detailed than an absorption costing system

C : will provide more accurate overhead allocation than absorption costing

D : will cost less to administer than an absorption costing system

Answer: C

Question 2

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 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

Division A is an investment centre with assets of $7.3 million. The following is an extract from the annual budget for division A:

The cost of capital is 14%.
Calculate the residual income for division A.

A : $808,000

B : $1,727,800

C : $358,000

D : $2,008,000

Answer: A

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: Apr 29, 2026

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