Free CIMA P2 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 $.

A company has just received the latest in a series of annual payments; this payment was $620. The annual payments are expected to continue for three more years with each payment being increased by the expected rate of inflation. The real cost of capital is 8% per year and the expected rate of inflation is
6% per year.
What is the present value of the future payments the company expects to receive?
Give your answer to the nearest $.

How does beyond budgeting NOT help to resolve the weaknesses of traditional budgeting? Select ALL that apply.

• A.Managers are set goals and targets to achieve rather than abiding by strict budgets and variances.
• B.Managers are given more freedom and control over their business units under Beyond budgeting.
• C.Managers focus on keeping costs low in the short term to ensure maximised profits.
• D.Managers have a much larger scope of business goals that when achieved, will increase shareholder value.
• E.Managers are encouraged to designate responsibility to others to lessen their workload so they may concentrate on important tasks.
• F.Managers are given incentives to meet or undercut budgets.

A project requires an initial investment of $160,000 in an asset for which the annual depreciation charge will be $40,000. The forecast profits from the investment are as follows.

What is the payback period for the project in years? Give your answer to two decimal places.

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

• A.Internal transfers are priced at marginal cost and a lump sum payment is made subsequently to contribute to fixed costs.
• B.Internal customers are offered trade discounts depending on the number of units they purchase.
• C.Internal customers are charged a lower price than external customers to reflect savings in distribution costs.
• D.The selling price recorded by the selling division is higher than the cost recorded by the receiving division.