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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:
Sep 30, 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

Which of the following statements is correct in respect of the key feature of dual pricing?

Options:

A.

The selling price recorded by the selling division is higher than the cost recorded by the receiving division.

B.

Internal customers are offered trade discounts depending on the number of units they purchase.

C.

Internal transfers are priced at marginal cost and a lump sum payment is made subsequently to contribute to fixed costs.

D.

Internal customers are charged a lower price than external customers to reflect savings in distribution costs.

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Question 2

A company operates a divisional structure. The manager of division D receives a bonus based on the division's annual return on capital employed (ROCE).

A minimum ROCE of 20% must be achieved to receive any bonus and thereafter the bonus increases in line with increases in ROCE.

This year division D achieved a ROCE of 24% and the divisional manager received a large bonus.

The manager is considering an investment in a new machine for next year. The incremental ROCE earned by the machine is expected to be 19% although the ROCE for the division as a whole with the machine is expected to be 22%. Without the machine, ROCE is likely to be stable at 24%.

The cost of capital for the company as a whole is 18% per year.

Which of the following statements is correct?

Options:

A.

The manager will accept the investment because overall the division will earn a ROCE that exceeds the minimum target of 20%.

B.

The manager will reject the investment because it will result in a lower bonus than without the investment.

C.

The manager will accept the investment because it will earn a ROCE that is higher than the company's cost of capital.

D.

The manager will reject the investment because it will result in the receipt of no bonus.

Question 3

LL produces an item, the Z, for which the demand curve is estimated to be:

P = 10 - 0.0001Q

where, P is the unit price in $ and Q is the annual sales volume in units;

Marginal revenue (MR) = 10 - 0.0002Q

The variable cost of producing the Z is $2 per unit. The annual fixed costs of production are $110,000.

What is the profit maximizing output level?

Options:

A.

50,000 units

B.

45,000 units

C.

40,000 units

D.

35,000 units

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