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: Dec 03, 2021

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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

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 3

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

Question 4

A manufacturing company is in the process of introducing just in time (JIT) and total quality management (TQM) into every aspect of its value chain.
Which TWO of the following are appropriate changes to make to the support activities in the organization's value chain?

A : bound logistics would need to ensure that materials of appropriate quality are delivered on a just in time basis.

B : erations would need to be carried out on a right first time basis as any failure could delay production.

C : ter sales service would need to ensure that appraisal costs are kept to a minimum.

D : ocurement would need to arrange to purchase goods so that they are delivered as required.

E : rm infrastructure would need to arrange appropriate training courses for staff.

F : chnology development would need to ensure that processes are continually improving.

Answer: A,D

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

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Total 205 Questions | Updated On: Dec 03, 2021

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