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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:
Jul 31, 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

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.

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Question 2

Endure Co. makes 1,000 units ofX and 2,000 units of Y.

Costs for X: Material $4, labour $8, direct overhead $2, fixed cost $4.

Costs for Y: Material $9, labour $9, direct overhead $4, fixed cost $6.

Selling price for X and Y are S19 and $25 respectively. Another company can sell ready made product X and product Y's to Endure Co, this company sells X at $12 and Y at $21. Advise Endure Co. on what would be the

most cost effective way to source products X and Y.

Options:

A.

Endure should buy X and Yfrom the other supplier.

B.

Endure should buy X but produce Y themselves.

C.

Endure should produce both X and Y themselves.

D.

Endure should buy Y but produce X themselves.

Question 3

Which of the following is the ideal basis to use for a transfer price when there is a perfect external market?

Options:

A.

Actual variable cost

B.

Market price

C.

Standard variable cost

D.

Full cost plus