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CIMA P2 Exam
Advanced Management Accounting (Page 7 )

Updated On: 1-Feb-2026
Page 7 of 42
PDF with 202 Questions

An organization has the right to mine for gold on its land. The price of gold and the cost of extraction are such that mining is not currently financially viable. However, the organization has the right to commence mining at any time in the future if the price of gold increases and makes mining financially viable.

This right to commence mining in the future is an option to:

  1. abandon
  2. redeploy
  3. expand
  4. delay

Answer(s): D



A company has a 31 December year end and pays corporation tax at a rate of 30%. Corporation tax is payable 12 months after the end of the year to which the cash flows relate. The company can claim tax allowable depreciation at a rate of 25% reducing balance. It pays $1 million for a machine on 31 December 20X4. The company's cost of capital is 10%.

What is the present value of the benefit of the first portion of tax allowable depreciation?

  1. $250,000
  2. $227,500
  3. $75,000
  4. $68,175

Answer(s): D



In order to support decision making, management accounting information categorizes costs in a variety of ways.

Responsibility accounting primarily distinguishes between costs on the basis that they are either:

  1. sunk or opportunity costs
  2. fixed or variable costs
  3. controllable or uncontrollable costs
  4. relevant or non-relevant costs

Answer(s): C



Company B, a video games developer, wants to use data to track the amount of traffic it receives on its social media pages. It specifically wants to find out the demographic it is most popular with on this platform, and

how it can branch out to different demographics through further advertising.

How best could the company use big data to expand its demographic reach?

Select ALL that apply.

  1. Use other data detailing regional sales to target areas where the demographics in question form a large part of the population.
  2. Resolve to focus advertising on the demographics with which the company is popular so as to save money.
  3. Implement an aggressive marketing campaign targeted at the demographics in question.
  4. Use the data to create new products that would appeal more to the demographics with which the company is not popular.
  5. Create a blog appealing to the demographics in question with news about the company.

Answer(s): A,B,C



DRAG DROP (Drag and Drop is not supported)

Place each performance measure against the correct perspective of the Balanced Scorecard for a company that operates a chain of hotels.

  1. See Explanation section for answer.

Answer(s): A

Explanation:



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