Free CIMA CIMAPRO19-P02-1-ENG Exam Questions

Become CIMA Certified with updated CIMAPRO19-P02-1-ENG exam questions and correct answers

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Total 205 Questions | Updated On: Dec 22, 2020

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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

Which of the following statements are correct with regard to responsibility centres?
Select ALL that apply.

A : venue centre managers have a lower level of decision-making authority than profit centre managers.

B : venue centre managers and profit centre managers are accountable for controllable costs only.

C : ofit centre managers and investment centre managers are responsible for the majority of operating costs incurred.

D : vestment centre managers have a higher level of managerial authority than profit centre managers.

E : nagers of profit centres have authority over the level of investment in working capital but managers of cost centres do not.

Answer: A,C,D

Question 3

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

Question 4

You have just assessed an investment proposal, involving an immediate cash outflow followed by a series of cash inflows over the next 7years, by deducing the NPV and the IRR. You have now discovered that you have
underestimated the discount rate.
Correcting the underestimation will have the following effect, relative to your original deductions:

A : V will reduce, IRR will not change

B : NPV and IRR will not change

C : V will increase, IRR will reduce

D : V and IRR will both increase

E : t enough information given for an answer

Answer: A

Question 5

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

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Total 205 Questions | Updated On: Dec 22, 2020

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