Introduction of Cima P2 Exam!

CIMA P2, also known as Advanced Management Accounting, is a professional-level examination that is part of the Chartered Institute of Management Accountants (CIMA) professional qualification. It covers the concepts, tools, and techniques used in advanced management accounting and is designed to assess a candidate's ability to apply their knowledge in a range of business contexts.

What is the Duration of Cima P2 Exam?

The CIMA P2 exam is a two-hour computer-based exam.

What are the Number of Questions Asked in Cima P2 Exam?

There are 100 questions in the CIMA P2 exam.

What is the Passing Score for Cima P2 Exam?

The passing score for the CIMA P2 exam is 50%.

What is the Competency Level required for Cima P2 Exam?

The CIMA P2 exam requires a minimum competency level of ‘Applied’. This means that the candidate should have the ability to apply knowledge and skills to practical business situations.

What is the Question Format of Cima P2 Exam?

The CIMA P2 exam consists of objective test questions (OTQs). These are multiple-choice questions with four answer options. Some questions may have more than one correct answer.

How Can You Take Cima P2 Exam?

The CIMA P2 exam can be taken either online or in a testing center. To take the exam online, you must register for the exam through the CIMA website. Once you have registered, you will be provided with a unique access code that will allow you to access the exam. The exam can be taken at any time and from any location. To take the exam in a testing center, you must register for the exam through the CIMA website and then select a testing center. Once you have registered, you will be provided with a unique access code that will allow you to access the exam at the selected testing center. The exam must be completed within the allotted time at the testing center.

What Language Cima P2 Exam is Offered?

The CIMA P2 exam is offered in English.

What is the Cost of Cima P2 Exam?

The cost of the CIMA P2 exam is £90.

What is the Target Audience of Cima P2 Exam?

The CIMA P2 Exam is designed for students who have completed the CIMA Operational Level and are looking to progress to the CIMA Strategic Level. It is aimed at professionals who are looking to develop their management accounting skills and knowledge.

What is the Average Salary of Cima P2 Certified in the Market?

The average salary of Advanced Management Accounting certified professionals varies widely by role, region, and experience, because it depends on the job the certification is combined with. Check current listings in your market for an up-to-date figure.

Who are the Testing Providers of Cima P2 Exam?

The CIMA Professional Qualification exams are administered by Prometric. Prometric is a global leader in testing and assessment services and provides testing services for a variety of organizations, including professional licensing and certification boards.

What is the Recommended Experience for Cima P2 Exam?

The recommended experience for the CIMA P2 exam is three to five years of experience in a finance or accounting role. It is also recommended that candidates have a good understanding of the core financial and management accounting concepts, as well as a good understanding of the CIMA syllabus. Additionally, candidates should have a good understanding of the CIMA Professional Qualification, including the CIMA Professional Qualification syllabus and the CIMA Professional Qualification Study Guide.

What are the Prerequisites of Cima P2 Exam?

The Prerequisite for Cima P2 Exam is to have passed the Cima P1 Exam or Cima Operational Case Study Exam. You must also have a minimum of two years of relevant work experience.

What is the Expected Retirement Date of Cima P2 Exam?

The Cima P2 exam is the current version of the Advanced Management Accounting exam, and Cima has not announced a retirement date for it. When Cima introduces a newer version, the retirement date for the older version is published on the Cima certification site.

What is the Difficulty Level of Cima P2 Exam?

The difficulty level of the CIMA P2 exam is considered to be medium to difficult. The exam is designed to test a candidate's knowledge and understanding of financial management and risk management. Candidates should be prepared to work through complex calculations and analysis.

What is the Roadmap / Track of Cima P2 Exam?

The CIMA Professional Qualification is made up of three levels: Operational, Management, and Strategic. To become a fully qualified CIMA Professional, you must pass all three levels. The CIMA Professional Qualification is divided into three levels, each of which consists of three exams: Operational Level: • E1: Enterprise Operations • P1: Performance Operations • F1: Financial Operations Management Level: • E2: Enterprise Management • P2: Performance Management • F2: Financial Management Strategic Level: • E3: Enterprise Strategy • P3: Performance Strategy • F3: Financial Strategy In order to pass the CIMA Professional Qualification, you must pass all nine exams. The recommended order for taking the exams is as follows: • E1: Enterprise Operations • P1: Performance Operations • F1: Financial

What are the Topics Cima P2 Exam Covers?

The CIMA P2 exam covers a range of topics related to advanced management accounting, including performance management, decision-making, risk management and financial strategy. 1. Performance Management: This topic covers the use of performance management techniques to assess, monitor and improve the performance of an organisation. It includes topics such as Balanced Scorecard, Activity-Based Costing and Economic Value Added. 2. Decision-Making: This topic covers the use of decision-making techniques to analyse and evaluate data and information for decision-making purposes. It includes topics such as Decision Trees, Sensitivity Analysis and Simulation. 3. Risk Management: This topic covers the use of risk management techniques to identify, assess and manage risks. It includes topics such as Risk Identification, Risk Analysis and Risk Mitigation. 4. Financial Strategy: This topic covers the use of financial strategies to manage and improve financial performance. It includes topics such as Financial Analysis, Capital Budgeting and Mer

What are the Sample Questions of Cima P2 Exam?

1. How does a company’s capital structure affect its cost of capital? 2. What is the difference between a hedge fund and a mutual fund? 3. How do you calculate the present value of a perpetuity? 4. What are the advantages and disadvantages of using derivatives to manage risk? 5. What is the purpose of an income statement? 6. What techniques can be used to measure the performance of an organization? 7. How does the liquidity of an asset affect its pricing? 8. What are the differences between a private equity fund and a venture capital fund? 9. How does the cost of debt affect the weighted average cost of capital (WACC)? 10. What is the role of corporate governance in the financial management of a company?

← Back to exam page

Free P2 – Advanced Management Accounting Practice Test Question

Free demo downloads

Loading demo links...

Showing 1–10 of 10 questions

Question 1

Place each of the activities described below against the correct classification of quality costs.

$C:\Users\Kamran\Desktop\image - Copy.jpg$

Answer is in the explanation below.

Ask AI for More Explanation

— your own AI account, opens inside the app

Question 3

An organization produces only two products. Each month it produces 1,000 units of product A and 10,000 units of product B.

Using traditional absorption costing the products have very similar unit costs. However when costs are calculated using activity-based costing (ABC), product A's unit cost is significantly higher than that of product B.

Which of the following factors has the potential to cause this difference?

Select ALL that apply.

Select all that apply, then click Submit answer.

○
ABC cost calculations are not simply volume-related.
○
ABC costs are driven only by the volume of output.
○
ABC considers only marginal costs.
○
ABC uses multiple cost drivers to trace overhead costs to products.
○
ABC considers only direct costs.

Ask AI for More Explanation

— your own AI account, opens inside the app

Question 4

Which of the following statements are correct with regard to responsibility centres?

Select ALL that apply.

Select all that apply, then click Submit answer.

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

Ask AI for More Explanation

— your own AI account, opens inside the app

Question 5

Which TWO of the following actions taken during the budgetary planning process will result in the creation of budgetary slack?

Select all that apply, then click Submit answer.

○
Overestimating costs
○
Underestimating costs
○
Underestimating revenues
○
Overestimating revenues
○
Overestimating profit

Ask AI for More Explanation

— your own AI account, opens inside the app

Question 6

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.

Select all that apply, then click Submit answer.

○
Full implementation of JIT is unlikely to be successful unless a TQM environment has first been established.
○
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.
○
Total quality costs are likely to begin declining immediately once the process of implementing TQM has commenced.
○
JIT offers the long run prospect of significantly reducing inventory.
○
It would be possible to implement TQM without implementing JIT.
○
It is not possible to implement JIT for production without first implementing JIT for purchasing.

Ask AI for More Explanation

— your own AI account, opens inside the app

Question 7

A positive net present value (NPV) has been calculated for a project to launch a new product. An additional calculation is required to identify the sensitivity of the NPV to changes in the forecast total sales volume.

The present value of which of the following would be used in the calculation?

Select an option, then click Submit answer.

○
Contribution
○
Operating profit
○
Fixed overheads
○
Net profit

Ask AI for More Explanation

— your own AI account, opens inside the app

Question 8

It is often claimed that a two-part transfer pricing system offers a number of advantages to organizations which use it.

Which of the following statements is NOT an advantage of using a two-part transfer pricing system?

Select an option, then click Submit answer.

○
Transfers are made at the marginal cost of the supplying division and both divisions should be able to report profits from inter-divisional trading.
○
The receiving division is made aware of and charged for the full cost of obtaining intermediate products from other divisions.
○
It stimulates planning, communication and coordination amongst divisions.
○
The agreed fixed fee simply compensates the supplying division for incurring the fixed costs associated with the item transferred.

Ask AI for More Explanation

— your own AI account, opens inside the app

Question 9

A company is considering two mutually exclusive projects, an analysis of which is given below:

$C:\Users\Kamran\Desktop\image - Copy.jpg$

The company's cost of capital is 12%.

Assuming an objective of maximising shareholders' wealth, which project would be recommmended?

Select an option, then click Submit answer.

○
Project B because it has the higher net present value.
○
Project B because it has the shorter payback period.
○
Project A because it has the higher accounting rate of return.
○
Project A because it has the higher internal rate of return.

Ask AI for More Explanation

— your own AI account, opens inside the app

Question 10

A product requires one each of three different components.

Faulty components are identified only at the end of the manufacturing process.

The following average fault rates have been identified:

Component A – 1 in 100

Component B – 1 in 20

Component C – 1 in 10

The probability that a unit of finished product contains no faulty components is:

Select an option, then click Submit answer.

○
0.84645
○
0.00005
○
0.99231
○
0.97692

Ask AI for More Explanation

— your own AI account, opens inside the app

About the P2 Free Practice Test

Thinking of taking the Advanced Management Accounting (P2) exam? This free Cima practice test is the place to start. You will find 10 free questions, drawn from the full Study4Pass practice set of 184 questions for this exam. The free sample includes 4 single-answer, 4 multiple-answer and 2 drag-and-drop questions — the same mix of formats you will meet in the full set. The questions follow the same topic balance as the real exam: Performance Management, Decision-Making, Risk Management and Financial Strategy. CIMA P2, also known as Advanced Management Accounting, is a professional-level examination that is part of the Chartered Institute of Management Accountants (CIMA) professional qualification.

The CIMA P2 Exam is designed for students who have completed the CIMA Operational Level and are looking to progress to the CIMA Strategic Level. The Prerequisite for Cima P2 Exam is to have passed the Cima P1 Exam or Cima Operational Case Study Exam.

Certification: Advanced Management Accounting (P2)
Vendor: Cima
Free on this page: 10 practice questions with answers and explanations
Full practice set: 184 questions

Use the sample the way you would use the real thing: answer each question on your own first, then open the explanation and make sure you understand why the right answer is right. That habit — reasoning instead of memorizing — is what carries over to exam day. When a topic keeps tripping you up, that is your study plan telling you where to go next.

When you finish the sample, do not just count the score — read it. Every missed question names a topic, and the full set lets you train that topic on its own until it stops costing you marks. That loop of test, review and targeted practice is how this set is designed to be used, from the first free question to the last simulation.

Inside the full P2 practice set:

All 184 questions with answers and explanations
Timed Exam Simulation that mirrors the real exam pressure
Topic Training to drill one domain at a time
Ask AI for More Explanation on every question
Flag questions and review them before you finish

How to use this P2 free practice test

Pick an answer for each question and check it straight away — the correct answer and a full explanation appear under the question. There is no time limit and nothing to sign up for. When an explanation is not enough, use Ask AI: this is an AI-Enabled practice test, and Ask AI explains the concept behind the question in plain language. When the free sample feels comfortable, the full set of 184 questions adds timed Exam Simulation, topic-by-topic training, and flagged-question review — the closest thing to exam day you can get before the real thing.

What to study for each P2 domain

Performance Management — This topic covers the use of performance management techniques to assess, monitor and improve the performance of an organisation.
Decision-Making — This topic covers the use of decision-making techniques to analyse and evaluate data and information for decision-making purposes.
Risk Management — This topic covers the use of risk management techniques to identify, assess and manage risks.
Financial Strategy — This topic covers the use of financial strategies to manage and improve financial performance.

P2 practice test — quick questions

Is this P2 practice test free?

Yes. Every question on this page — all 10 of them — is free to use, and you never need to create an account to try them.

How many questions are in the full P2 set?

The full Study4Pass set for P2 has 184 practice questions. This page gives you 10 of them free so you can judge the quality and difficulty first.

Does the free test show the answers?

Yes. Check any question to reveal the correct answer and its explanation, and use Ask AI whenever you want the underlying concept explained step by step.