CIMAPRO19-P02-1 Exam Questions & Answers
P2 Advanced Management Accounting • CIMA
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About CIMAPRO19-P02-1 Exam
The CIMAPRO19-P02-1 (P2 Advanced Management Accounting) certification exam is a crucial credential for accounting professionals seeking to advance their careers in management accounting and financial strategy. This comprehensive examination tests candidates' expertise in advanced management accounting principles, including strategic planning, performance management, risk analysis, and decision-making frameworks. The P2 Advanced Management Accounting exam covers essential topics such as cost accounting, budgeting, variance analysis, and financial reporting, making it ideal for professionals aiming to demonstrate mastery of complex accounting concepts and enhance their professional credibility in competitive markets.
The CIMAPRO19-P02-1 exam is designed for qualified accountants, finance professionals, and aspiring management accountants who want to validate their technical knowledge and advance to senior positions within their organizations. To successfully pass this challenging certification, candidates benefit significantly from utilizing updated exam dumps and practice tests that simulate real exam scenarios and question formats. These preparation resources help candidates identify knowledge gaps, build confidence, and develop effective test-taking strategies. By combining thorough study of core concepts with hands-on practice using authentic exam materials, candidates can significantly improve their chances of achieving a passing score and securing their CIMA P2 Advanced Management Accounting certification.
Exam Topics & Objectives
4-Week Study Plan for CIMAPRO19-P02-1
Week 1: Managing the Costs of Creating Value & Foundations
- Study cost classification systems and cost behaviour patterns (fixed, variable, semi-variable)
- Review activity-based costing (ABC) and activity-based management (ABM) principles
- Learn lifecycle costing and target costing methodologies
- Understand value chain analysis and cost driver identification
- Complete practice questions on cost allocation and absorption costing
- Analyze real-world case studies on cost management strategies
Week 2: Capital Investment Decision Making
- Master net present value (NPV) and internal rate of return (IRR) calculations
- Study payback period, discounted payback period, and profitability index methods
- Learn accounting rate of return (ARR) and evaluation criteria
- Review capital rationing and capital budgeting processes
- Understand post-audit and investment appraisal in practice
- Complete numerical problems on investment decisions with multiple scenarios
- Practice sensitivity analysis and scenario planning exercises
Week 3: Managing and Controlling Performance & Risk Management
- Study divisional performance measurement and transfer pricing methods
- Learn responsibility accounting and cost, profit, and investment centres
- Review balanced scorecard frameworks and KPI selection
- Understand risk identification, assessment, and mitigation strategies
- Study internal controls framework and control effectiveness evaluation
- Learn compliance and regulatory requirements in management accounting
- Complete case studies on performance management systems and risk responses
Week 4: Integrated Revision & Exam Preparation
- Complete full-length mock examinations under timed conditions
- Review all five topic areas with integrated scenario-based questions
- Analyze weak areas and gaps from previous weeks' practice
- Study model answers and examiner reports from past papers
- Practice essay and computational questions with comprehensive workings
- Conduct peer review of answers and discuss alternative solutions
- Review formula sheets, key definitions, and critical concepts
- Complete final revision checklist and exam technique review
Sample CIMAPRO19-P02-1 Questions
Practice with real exam-style questions. Reveal answers to verify your knowledge.
A group consists of two divisions, Alpha and Beta, both of which are profit centers. Alpha sells a product to the external market and also sells it as an intermediate product to Beta.
Beta then processes further before selling the final product to the external market. The current group transfer pricing policy requires Alpha to charge Beta with the variable cost of production.
Which of the following statements is valid?
A manufacturing company has recently introduced a Total Quality Management (TQM) system. The company has invested heavily in the education and training of its staff, in addition to implementing new product design engineering. There is a plan to sample units from each batch of products manufactured to test for errors, although this has not yet been implemented due to budget constraints.
The company is experiencing high levels of customer complaints, with many faulty units being returned by the customer for refund or replacement. Sales revenue has fallen recently, mainly due to negative press coverage linked to dissatisfied customers.
Select the statement MOST likely to apply.
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.
Performance measures that monitor the extent to which a not-for-profit organization's objectives have been achieved are measures of:
An organization uses a balanced scorecard approach to performance measurement, both at the corporate level and to assess the performance of each of its responsibility centre managers.
Which THREE of the following statements are valid in respect of the effect of this approach on the behavior of the responsibility centre managers?
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