Practice CIMAPRO19-P02-1-ENG Exam Online

Question 1

A manufacturing company is in the process of introducing just in time (JIT) and total quality management (TQM) into every aspect of its value chain.
Which TWO of the following are appropriate changes to make to the support activities in the organization's value chain?

A : Inbound logistics would need to ensure that materials of appropriate quality are delivered on a just in time basis.

B : Operations would need to be carried out on a right first time basis as any failure could delay production.

C : After sales service would need to ensure that appraisal costs are kept to a minimum.

D : Procurement would need to arrange to purchase goods so that they are delivered as required.

E : Firm infrastructure would need to arrange appropriate training courses for staff.

F : Technology development would need to ensure that processes are continually improving.

Answer: A,D

Question 2

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

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.

Answer: A

Question 3

One of an investment centre's products is sold on an external market. Output is limited because the specialist machine that manufactures the product is operating at full capacity.

Current data for the product are as follows.

A : $21,400

B : $17,800

C : $23,900

D : $26,160

Answer: A

Question 4

Which TWO of the following conditions are necessary for a learning curve to apply?

A : The process must be simple.

B : The process must be complex.

C : There must be regular breaks in production.

D : Production must be machine intensive.

E : Production must be labor intensive.

Answer: A,B

Question 5

A company makes three products, E, F and G. Total overheads for the year are expected to be $1.2 million, with the following split between cost pools:

Cost driver information has been estimated as follows:

The company plans to make 10,000 units of product E in the year, with an expected direct cost of $0.60 per unit. This annual production of product E is expected to require 20 quality inspections, 28 purchase requisitions, and 400 kilogrammes of materials.
What is the overhead cost per unit of product E?

A : $0.10

B : $0.70

C : $3.57

D : $4.17

Answer: A

Name:	P2 Advanced Management Accounting
Exam Code:	CIMAPRO19-P02-1-ENG
Certification:	CIMA Professional Qualification
Vendor:	CIMA
Total Questions:	205
Last Updated:	Apr 24, 2024

CIMA CIMAPRO19-P02-1-ENG