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CIMA Management P2 Exam Questions and Answers PDF

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Total 184 questions

Advanced Management Accounting Questions and Answers

Question 25

A long established organization has recognised the need to make urgent changes to the way it operates in order to remain competitive. The organization wishes to dramatically improve its performance through a fundamental rethinking and radical redesign of its existing activities.

Which of the following techniques should be used to achieve this?

Options:

A.

Functional analysis

B.

Kaizen costing

C.

Business process re-engineering

D.

Process innovation

Question 26

SkillWeave Industries are focused on managing the risk of selling their cars to the region due to economic turmoil, and have now begun using funds from sales in the region to fund supplier purchases from that region to

reduce the risk from the volatile currency. However, SkillWeave want to go a step further and make the risk even less sizeable.

Which of the following is a method by which SkillWeave can operate in the market and transfer the risk of exchange rate exposure to another party?

Options:

A.

Invoice international sales in domestic currency

B.

Temporarily stop operating in that target market

C.

Arrange a forward foreign exchange rate contract agreeing to buy a given amount of the foreign currency in 3 months time for a fixed exchange rate based on current rates

D.

Put a sale on all vehicles stationed in the region to clear stock quickly

Question 27

A company has just completed the production of the first 16 batches of a product. A learning curve has been observed throughout. The following table gives further details.

To the nearest whole percentage, what rate of learning is implied?

Options:

A.

87%

B.

8%

C.

84%

D.

93%

Question 28

Using Porter's value chain, place the tokens to correctly categories the following activities of a manufacturing company.

Options:

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Total 184 questions