Free CIMA CIMAPRO19-P02-1-ENG Exam Questions

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

Page: 1 / 41

Total 205 Questions | Updated On: Jun 04, 2025

Add To Cart

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

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 3

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 4

Which TWO of the following expressions are correct?

A : 1 + money rate = (1 + real rate) x (1 + inflation rate)

B : 1 + real rate = (1 + money rate) / (1 + inflation rate)

C : 1 + real rate = (1 + inflation rate) / (1 + money rate)

D : 1 + money rate = (1 + inflation rate) / (1 + real rate)

E : 1 + inflation rate = (1 + money rate) x (1 + real rate)

Answer: A,B

Question 5

A company makes three products, E, F and G. Total overheads for the year are expected to be $1.2 million, with the following split between cost pools:

Cost driver information has been estimated as follows:

The company plans to make 10,000 units of product E in the year, with an expected direct cost of $0.60 per unit. This annual production of product E is expected to require 20 quality inspections, 28 purchase requisitions, and 400 kilogrammes of materials.
What is the overhead cost per unit of product E?

A : $0.10

B : $0.70

C : $3.57

D : $4.17

Answer: A

Page: 1 / 41

Total 205 Questions | Updated On: Jun 04, 2025

Add To Cart