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CIMA P2 Exam With Confidence Using Practice Dumps

Exam Code:
P2
Exam Name:
Advanced Management Accounting
Certification:
Vendor:
Questions:
184
Last Updated:
Jun 16, 2025
Exam Status:
Stable
CIMA P2

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

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Advanced Management Accounting Questions and Answers

Question 1

In order to support decision making, management accounting information categorizes costs in a variety of ways.

Responsibility accounting primarily distinguishes between costs on the basis that they are either:

Options:

A.

sunk or opportunity costs

B.

fixed or variable costs

C.

controllable or uncontrollable costs

D.

relevant or non-relevant costs

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Question 2

In order to remain competitive an organization wishes to achieve cost savings for one of its existing products.

Which of the following correctly describes methods which the organization can use to achieve these cost savings?

Select ALL that apply.

Options:

A.

Functional analysis is carried out only on existing products and is concerned only with minimizing the cost of the originally defined functions of a product.

B.

Value engineering is a fundamental rethinking and radical redesign of an organization's existing processes.

C.

Target costing is continuously setting new stretch targets while the product is in production.

D.

Value analysis is examining a product's costs in order to achieve its purpose at a reduced cost while maintaining its reliability and quality.

E.

Kaizen costing is seeking to make cost savings by continuously making small incremental cost reductions while the product is in production.

Question 3

Which TWO of the following expressions are correct?

Options:

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)