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CIMA P2 Exam With Confidence Using Practice Dumps

Exam Code:
P2
Exam Name:
Advanced Management Accounting
Certification:
CIMA Management
Vendor:
CIMA
Questions:
202
Last Updated:
Jan 2, 2026
Exam Status:
Stable
CIMA P2

P2: CIMA Management Exam 2025 Study Guide Pdf and Test Engine

Are you worried about passing the CIMA P2 (Advanced Management Accounting) exam? Download the most recent CIMA P2 braindumps with answers that are 100% real. After downloading the CIMA P2 exam dumps training , you can receive 99 days of free updates, making this website one of the best options to save additional money. In order to help you prepare for the CIMA P2 exam questions and verified answers by IT certified experts, CertsTopics has put together a complete collection of dumps questions and answers. To help you prepare and pass the CIMA P2 exam on your first attempt, we have compiled actual exam questions and their answers. 

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Advanced Management Accounting Questions and Answers

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Question 1

An investment centre manager is considering the purchase of a new machine. If purchased, the new machine would replace an existing one that is used to manufacture one of the investment centre's existing products.

The new machine would incur $800 per month additional running costs; this includes $300 per month of additional depreciation.

The new machine would save on direct labor time. This means that the fixed production overhead absorbed by the product on the basis of direct labor hours would reduce by $100 per month.

What is the total cost of the above that is relevant to the decision to purchase the machine?

Options:

A.

$500; only the additional running costs, excluding depreciation, are relevant.

B.

$700; all of the additional running costs and the reduction in absorbed overhead are relevant.

C.

$400; only the reduction in absorbed overhead and the additional running costs, excluding depreciation, are relevant.

D.

$800; all of the additional running costs are relevant, but the reduction in absorbed overhead is not relevant.

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Question 2

An organization is comprised of two divisions. One of the divisions manufactures a product that it sells both to an imperfect external market and to the other division.

The organization wishes to establish the most suitable basis for the transfer price for this product and is considering either a negotiated transfer price or a market-based transfer price.

Which of the following statements is correct?

Options:

A.

A negotiated transfer price could help to overcome the problem of establishing a single price for this external market.

B.

A single market price for all of the division's output can be determined easily whereas a negotiated transfer price may result in protracted negotiations.

C.

A negotiated transfer price will always result in goal congruence whereas this is not always true when using a single market-based transfer price.

D.

A market-based transfer price will ensure both divisional autonomy and goal congruence because part of the division's output is sold to the external market.

Question 3

Which TWO of the following statements are correct?

Options:

A.

It is worthwhile for a company to sell further units when the marginal revenue is greater than the marginal cost.

B.

Price is the only factor affecting the demand for products and services.

C.

Premium pricing is possible when there is a measure of product or service differentiation.

D.

Loss leadership pricing is appropriate for a new product which is not part of a range of products.

E.

Demand functions can be predicted accurately and the relationship between price and quantity demanded is always constant.

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