Free CIMA CIMAPRO19-P02-1 Exam Dumps Questions & Answers

A company has invested $500,000 in developing a new product and requires a return of 12% on this investment.
The company has researched the market and has set the selling price for the new product at $300 per unit. At this price, sales volume for next year is forecast to be 500 units. The forecast unit cost is $210.
What is the target cost gap per unit for the coming year?
Give your answer to the nearest whole $.

In order to support decision making, management accounting information categorizes costs in a variety of ways.
Responsibility accounting primarily distinguishes between costs on the basis that they are either:

• A.controllable or uncontrollable costs
• B.relevant or non-relevant costs
• C.fixed or variable costs
• D.sunk or opportunity costs

A large manufacturing company sells a range of products. Details of one of these products are as follows.

Each completed batch is delivered immediately in full to the one customer that purchases this product.
The delivery vehicle is currently only 50% full when it makes these deliveries. The customer will accept deliveries of any size.
Managers are considering changing the production batch size to 150 units.
Increased material storage would be needed; this can be rented nearby at a cost of $1,500 per month.
The additional storage facility would enable an increase in the reorder quantity for the materials. As a result a 5% discount would be received on all materials purchased.
Using direct product profitability (DPP), what will be the monthly profit attributable to the product if the production batch size is changed to 150 units?
Give your answer to the nearest whole $.

Company D is about to launch an innovative and unique product which may face direct competition within three years. The company needs to achieve a rapid payback on all investments because it has limited access to external finance.
Which is the most appropriate pricing strategy for company D's new product, and for what reason?

• A.Market skimming because it enables high prices to be charged to buyers who want the product as soon as possible.
• B.Penetration pricing because it can be used to rapidly build sales volume in high growth markets.
• C.Market skimming because it exploits areas of the market which are sensitive to price.
• D.Penetration pricing because it can be used to rapidly build sales volume in mature markets.

An 80% learning curve will apply to the production of a new product. The first unit will require 120 labor hours. The labor rate is $11 per hour.
To the nearest $1, the expected total labor cost for the first 4 units is:

• A.$3,379
• B.$845
• C.$5,280
• D.$4,224