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CIMA P2 Exam With Confidence Using Practice Dumps

Exam Code:
P2
Exam Name:
Advanced Management Accounting
Certification:
Vendor:
Questions:
202
Last Updated:
Feb 18, 2026
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

The money cost of capital is 12%. The expected rate of inflation is 4%. What is the real cost of capital?

Give your answer to 2 decimal places.

Options:

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Question 2

Which of the following correctly defines the expected value of a project?

Options:

A.

The weighted average of the possible outcomes of the project.

B.

The actual amount of incremental wealth that the project will generate.

C.

The most likely amount of incremental wealth that the project will generate.

D.

The present value of the positive cash flows that the project will generate.

Question 3

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.