Free CIMA CIMAPRO19-P02-1-ENG Exam Questions

Become CIMA Certified with updated CIMAPRO19-P02-1-ENG exam questions and correct answers

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Total 205 Questions | Updated On: Oct 30, 2024

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Question 1

You have just assessed an investment proposal, involving an immediate cash outflow followed by a series of cash inflows over the next 7years, by deducing the NPV and the IRR. You have now discovered that you have
underestimated the discount rate.
Correcting the underestimation will have the following effect, relative to your original deductions:

A : V will reduce, IRR will not change

B : NPV and IRR will not change

C : V will increase, IRR will reduce

D : V and IRR will both increase

E : t enough information given for an answer

Answer: A

Question 2

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

A : selling price recorded by the selling division is higher than the cost recorded by the receiving division.

B : ternal customers are offered trade discounts depending on the number of units they purchase.

C : ternal transfers are priced at marginal cost and a lump sum payment is made subsequently to contribute to fixed costs.

D : ternal customers are charged a lower price than external customers to reflect savings in distribution costs.

Answer: A

Question 3

Firefighters risk serious and potentially fatal accidents whenever they attend an incident.
Which of the following statements is correct?

A : risk of serious accidents should be accepted in all but the most extreme incidents.

B : risk of serious accidents should always be accepted because that is what firefighters are paid to do.

C : risk of serious accidents should be avoided because the risk has a high probability and a high impact.

D : ery incident should be the subject of a detailed and thorough risk assessment before the firefighters are permitted to respond.

Answer: A

Question 4

Which TWO of the following expressions are correct?

A : 1 + money rate = (1 + real rate) x (1 + inflation rate)

B : 1 + real rate = (1 + money rate) / (1 + inflation rate)

C : 1 + real rate = (1 + inflation rate) / (1 + money rate)

D : 1 + money rate = (1 + inflation rate) / (1 + real rate)

E : 1 + inflation rate = (1 + money rate) x (1 + real rate)

Answer: A,B

Question 5

One of an investment centre's products is sold on an external market. Output is limited because the specialist machine that manufactures the product is operating at full capacity.

Current data for the product are as follows.

A : $21,400

B : $17,800

C : $23,900

D : $26,160

Answer: A

Page: 1 / 41

Total 205 Questions | Updated On: Oct 30, 2024

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