P2 Exam Questions and Answers | Exam-Dumps (Page: 5)

QUESTION: 21

In an organization's transfer pricing system the selling division and the purchasing division each record a different price for the same transaction.

This is known as a:

Dual pricing system.
Two part tariff system.
Full cost pricing system.
Marginal cost plus pricing system.

Answer(s): A

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TTR Ltd plans to purchase a new plant for $1,000m on the 1st of January 20X6. The annual sales expected from the production of this plant is S400m per year. The plant has an expected life of five years. The financial

accountant has computed the NPV of the project at $61.42m considering a discount rate of 10%.

The marketing director wants to know the percentage drop in revenue that the sales team can afford before the project becomes unviable. Which of the following indicates the percentage required by the marketing
director?

4.05%
5.05%
4.5%
10%

Answer(s): A

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QUESTION: 23

A risk averse decision maker will:

accept a risk if it is accompanied by a satisfactory potential return.
avoid all risks.
accept a risk if the expected value of the potential outcomes is positive.
always select the course of action that has the lowest risk.

Answer(s): A

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QUESTION: 24

A company is classifying its quality costs to prepare a quality cost report. Which of the following are conformance costs?

Select ALL that apply.

Internal Failure Costs
External Failure Costs
Prevention Costs
Appraisal Costs

Answer(s): C,D

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QUESTION: 25

To which technique for dealing with risk and uncertainty do ALL of the following statements apply?
· It requires that only one factor is considered at a time.

· It identifies areas which are crucial to a project, which can then be monitored if the project is chosen.

· It does not provide an indication of the likelihood of any change in the factors.

· Following the calculation, it requires the exercising of judgement to decide whether to accept or reject a project.

Sensitivity analysis
Probability analysis
Scenario analysis
Adjusting the discount rate to reflect risk.

Answer(s): A

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CIMA P2 Exam (page: 5)
CIMA Advanced Management Accounting
Updated on: 15-Dec-2025

QUESTION: 21

QUESTION: 22

QUESTION: 23

QUESTION: 24

QUESTION: 25

CIMA P2 Exam (page: 5) CIMA Advanced Management Accounting Updated on: 15-Dec-2025

QUESTION: 21

QUESTION: 22

QUESTION: 23

QUESTION: 24

QUESTION: 25

CIMA P2 Exam (page: 5)
CIMA Advanced Management Accounting
Updated on: 15-Dec-2025