← Back to exam page

P2 – Advanced Management Accounting

Loading demo links...

Showing 1–3 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.

Question 2

A Balanced Scorecard is being prepared for a coach passenger transport company. Place the correct perspective of the Balanced Scorecard against each performance measure.

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

Answer is in the explanation below.

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.