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: Aug 19, 2026

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Question 1

Which of the following statements about the use of traditional budgeting compared with a beyond budgeting approach is correct?

A : the organization has devolved decision making, beyond budgeting is not appropriate because it does not allow the same level of empowerment as traditional budgeting.

B : the organization's products are subject to rapid technological change, beyond budgeting would allow managers to respond more quickly than under traditional budgeting.

C : there is a dynamic external environment with fast moving opportunities, beyond budgeting will inhibit the organization's ability to take advantage of these opportunities whereas traditional budgeting will not.

D : the organization's culture is such that a top down budgeting system is desired then this is better achieved by adopting beyond budgeting rather than traditional budgeting.

Answer: B

Question 2

One of an investment centre's products is sold on an external market. Output is limited because the specialist machine that manufactures the product is operating at full capacity.

Current data for the product are as follows.

A : $21,400

B : $17,800

C : $23,900

D : $26,160

Answer: A

Question 3

The following summarised financial statements have been prepared by JNM's North subsidiary for the year just ended:

Calculate the North subsidiary's Residual Income, assuming that JNM's cost of capital is 10%.
Give your answer to the nearest $ million.

A :

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

Which TWO of the following conditions are necessary for a learning curve to apply?

A : process must be simple.

B : process must be complex.

C : There must be regular breaks in production.

D : oduction must be machine intensive.

E : oduction must be labor intensive.

Answer: A,B

Page: 1 / 41

Total 205 Questions | Updated On: Aug 19, 2026

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