Free CIMA P2 Practice Exam with Questions & Answers | Set: 4

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

PorkyCo is a leading bread manufacturer in Toyland operating two functional divisions: pulled and roasted. PorkyCo uses IT systems in all of its functions, for example, accounting has one system, manufacturing has its

system, warehousing has another and human resources is the latest to develop a dedicated system to manage training and development

The issue now is that when the CEO, Mr Button, needs information about two or more functions, he has to convene the department heads to get their reports and then study each in turn. As senior management

accountant at PorkyCo, help free up Mr Button's time by suggesting the most efficient way of getting all the information he needs.

Which of the following statements is NOT correct?

Transfer prices between responsibility centers should be set at a level that:

Kaizen costing is being used by an organization to gradually reduce the unit cost of one of its products in order to achieve a 20% mark up on the product's cost.

The selling price of the product must be $72 per unit and this selling price has been maintained for two years.

Two years ago the product's cost was $3 per unit more than its selling price. Kaizen costing has achieved an 8% reduction from the previous period's unit cost in each of the past two years. The organization expects to continue to achieve the same rate of cost reduction next year.

Which of the following statements provides an accurate analysis of the extent to which Kaizen costing has been successful in achieving the required unit cost for the product?

Using the Value Chain model for a manufacturing company, place the correct primary activity classification against each of the activities described.

A company is considering four mutually exclusive projects. There are three possible future demand conditions but the company has no idea of the probability of each of these demand conditions occurring. The forecast net present values (NPVs) of each of the four projects, under each of the three possible future demand conditions, are as follows.

Which investment would be selected using the maximin criterion?

A small company currently uses an information system that was implemented several years ago and is based entirely on internal data. The company is considering replacing it with a more up to date system. It has been suggested that the new system should include the use of big data.

Which TWO of the following statements are correct?

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?

The following data relate to an investment opportunity.

The percentage reduction in the annual revenue that could occur before the project is no longer financially viable is:

Place each method of analysing risk and uncertainty against the statement that describes it correctly.