Free CIMA CIMAPRO19-P02-1 Exam Dumps Questions & Answers

Which of the following statements are correct with regard to responsibility centres?
Select ALL that apply.

• A.  Revenue centre managers and profit centre managers are accountable for controllable costs only.
• B.  Managers of profit centres have authority over the level of investment in working capital but managers of cost centres do not.
• C.  Revenue centre managers have a lower level of decision-making authority than profit centre managers.
• D.  Investment centre managers have a higher level of managerial authority than profit centre managers.
• E.  Profit centre managers and investment centre managers are responsible for the majority of operating costs incurred.

An organization is competing in the high technology market. It sets a high sales price for its products initially to target the early adopters, and then the price is gradually reduced.
This pricing strategy is known as:

• A.  Loss leader pricing
• B.  Premium pricing
• C.  Penetration pricing
• D.  Market skimming

An organization wishes to achieve cost reductions for a product it already has in production without affecting the customer's perception of the product.
It has decided to carry out a systematic examination of the factors affecting the cost of the product in order to identify ways of achieving the specified purpose at lower cost while maintaining the required standard and quality.
Which of the following correctly identifies the activity that the organization is undertaking?

• A.  Standard costing
• B.  Value analysis
• C.  Process innovation
• D.  Kaizen costing

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?

Endure Co. makes 1,000 units ofX and 2,000 units of Y.
Costs for X: Material $4, labour $8, direct overhead $2, fixed cost $4.
Costs for Y: Material $9, labour $9, direct overhead $4, fixed cost $6.
Selling price for X and Y are S19 and $25 respectively. Another company can sell ready made product X and product Y's to Endure Co, this company sells X at $12 and Y at $21. Advise Endure Co. on what would be the most cost effective way to source products X and Y.

• A.  Endure should buy Y but produce X themselves.
• B.  Endure should buy X and Yfrom the other supplier.
• C.  Endure should buy X but produce Y themselves.
• D.  Endure should produce both X and Y themselves.