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CIMA CIMAPRO19-P02-1 Exam Syllabus Topics:

SectionWeightObjectives
Managing and controlling the performance of organisational units40%- Performance management
  • 1. Responsibility centres
  • 2. Behavioural aspects of control
  • 3. Transfer pricing
  • 4. Performance measurement systems
  • 5. Organisational performance reporting
Managing the costs of creating value20%- Cost management and cost transformation
  • 1. Quality management
  • 2. Value management
  • 3. Cost management methodologies
  • 4. Process improvement
Risk and control20%- Managing risk and control systems
  • 1. Risk assessment techniques
  • 2. Business risk identification
  • 3. Risk mitigation and monitoring
  • 4. Control frameworks
Capital investment decision making20%- Investment appraisal and project evaluation
  • 1. Project selection and ranking
  • 2. Risk and uncertainty in investment decisions
  • 3. Capital investment appraisal techniques
  • 4. Real options and advanced appraisal techniques

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CIMA Advanced Management Accounting Sample Questions:

The performance report for the production manager of a company for the last month included the following.
1,000 direct labor hours were worked at a basic rate of pay of $10 per hour. 200 of these hours were worked during overtime for which a 30% overtime premium was paid. 80 of these overtime hours were to fulfill a customer order that had originally been planned for manufacture next month. The sales manager had agreed to bring forward the delivery of this order at the request of the customer. The remaining overtime hours were due to unexpected inefficiency of the workforce; this has been traced to poor supervision by a junior manager.
Material costs included the following:
$5,300 of material A. Material A is a commodity and, due to changes on the global market, the actual unit cost of this material for last month was 6% higher than had been expected
$5,250 of material B. The usage of material B last month was 5% higher than it should have been due to faulty workmanship on the production line.
What is the total value of the above costs that was controllable by the production manager?

  • A. $19,810
  • B. $20,610
  • C. $20,360
  • D. $20,910
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

The Chief Executive of a large manufacturing company has made the following comment.
"All of our competitors are using both just-in-time(JIT) and Total Quality Management (TQM) whereas we have never used either. Consequently we are lagging behind our competitors because their levels of inventory and quality costs are significantly below ours. I want to see JIT fully implemented, both for purchasing and for production, in 4 weeks' time and TQM fully implemented 4 weeks after that." Which of the following provide appropriate advice to the Chief Executive?
Select ALL that apply.

  • A. JIT offers the long run prospect of significantly reducing inventory.
  • B. Full implementation of JIT is unlikely to be successful unless a TQM environment has first been established.
  • C. Implementing TQM from scratch within 8 weeks should be feasible for a large manufacturing company, but implementing JIT within 4 weeks is unlikely to be feasible.
  • D. It would be possible to implement TQM without implementing JIT.
  • E. It is not possible to implement JIT for production without first implementing JIT for purchasing.
  • F. Total quality costs are likely to begin declining immediately once the process of implementing TQM has commenced.
Reveal Solution  Discussion  0

Correct Answer: A,B,D  🗳️

An electronics company sells a range of tablet computers. Tablet computers come complete with an operating system that is regarded as the market leader. The company aims to launch a new version of its hardware every eighteen months and a major update to its software every three years. The latest version of the tablet computer is always sold at a higher price, but the older version that has been replaced is then sold for a time at a discounted price.
Which pricing model does this company appear to be using?

  • A. Skimming and loss leader pricing
  • B. Skimming and product bundling
  • C. Penetration and loss leader pricing
  • D. Penetration and product bundling
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

The money cost of capital is 12%. The expected rate of inflation is 4%. What is the real cost of capital?
Give your answer to 2 decimal places.

Reveal Solution  Discussion  0

Correct Answer:

7.69 %, 7.70 %

The following cost of quality report has been prepared for the latest period.

What is the difference between the cost of conformance and the cost of non-conformance?

Reveal Solution  Discussion  0

Correct Answer:

$270000

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