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P2 Exam Dumps : Advanced Management Accounting

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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 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

Question 3

Which of the following statements about learning curves is correct?

Options:

A.

The learning index for an 80% learning curve is calculated as log 2 divided by log 0.8.

B.

The learning index for an 80% learning curve is calculated as log 0.8 divided by log 2.

C.

A 90% learning curve indicates a faster rate of learning than an 80% learning curve.

D.

The learning index will always have a positive value.