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 18, 2025

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Question 1

A company has a 31 December year end and pays corporation tax at a rate of 30%. Corporation tax is payable 12 months after the end of the year to which the cash flows relate. The company can claim tax allowable depreciation at a rate of 25% reducing balance. It pays $1 million for a machine on 31 December 20X4. The company's cost of capital is 10%.
What is the present value of the benefit of the first portion of tax allowable depreciation?

A : $250,000

B : $227,500

C : $75,000

D : $68,175

Answer: D

Question 2

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 3

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

Question 4

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 5

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

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Total 205 Questions | Updated On: Dec 18, 2025

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