Advanced Management Accounting: CIMAPRO19-P02-1 Exam Premium File as PDF & Test Engine

Certification exams change, and so do we. Your CIMAPRO19-P02-1 purchase from Fast2test includes 365 days of free updates, so your CIMA Advanced Management Accounting practice questions always reflect the current 2026 syllabus.

CIMA CIMAPRO19-P02-1 Exam Overview:

CIMA CIMAPRO19-P02-1 Exam Syllabus Topics:

CIMA CIMAPRO19-P02-1 FAQs: What Every Candidate Asks

CIMA Advanced Management Accounting Sample Questions:

Question 1

The net present value of the cost of operating a machine for the next 4 years is £6,340. The discount rate used is 10%.
What is the equivalent annual cost and the present value of the cost in perpetuity of operating this machine?
Use discount factors to 3 decimal places.

A. Equivalent annual cost = £92,825
Present value of cost in perpetuity = £9,283
B. Equivalent annual cost = £2,000
Present value of cost in perpetuity = £20,000
C. Equivalent annual cost = 9,283
Present value of cost in perpetuity = £92,825
D. Equivalent annual cost = £20,000
Present value of cost in perpetuity = £2,000

Question 2

An organization has a decentralized structure in which division A supplies division B with an intermediate product for which there is no external market. Division B carries out further processing and then sells the final product on the external market. Due to organizational policy the current transfer pricing basis is variable cost.
The manager of division A has stated, "The current transfer price is unfair because it does not enable us to recoup our costs".
The manager of division B has stated, "The current transfer pricing system enables us to quote competitive prices for the finished product".
The Chief Executive of the organization is considering imposing a transfer pricing policy that uses dual pricing.
Dual pricing would:

A. involve a lump sum payment to division A in addition to the payment of the variable cost per unit.
B. increase divisional autonomy.
C. be welcomed by both divisional managers.
D. be welcomed by the manager of division A but the manager of division B would resist it.

Question 3

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

Question 4

A firm of accountants uses an activity-based costing system. The firm's costing system permits staff to indicate specific tasks undertaken for clients, such as requesting missing information. The amount charged for a request for missing information is based on the following analysis.
Each request takes an average of 15 minutes of professional staff time. Professional staff are charged out at $100 per hour.
Administrators then process the information request and prepare a standard letter. The average time administration staff spend on each information request is 20 minutes. The cost of administration staff at the firm is $75,600 per year. Administration staff work for a total of 6,000 hours per year. The cost of printing and posting a letter is $1.
Calculate the cost of an information request.
Give your answer to 2 decimal places.

Question 5

K Supermarket spends $80,000 per year on checking and processing receipts of inventory. Annual warehouse costs are a further $70,000 per year. These costs are currently treated as fixed overheads in the company's costing system.
As an experiment, the company is preparing a direct profitability analysis of a small range of products, including fresh grapes.
K Supermarket receives a total of 3,600 deliveries every year. 20% of these deliveries are of perishable goods such as grapes. It takes twice as long to process a delivery of perishable goods compared to a normal delivery because perishable goods have to be checked more carefully.
Half of the warehouse costs are for the chilled store that is used to store perishable goods. At any time, the chilled store has 800 kilos of perishable goods in stock.
K Supermarket receives 150 deliveries of grapes every year. Each delivery is for 100 kilos of grapes. The grapes spend an average of two days in the chilled store before they are sold.
Calculate the total cost per kilo of checking, processing and storing grapes that should be taken into account in determining the profitability of grapes.
Give your answer to the nearest whole cent.

Solutions: