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CIMA Management Changed P2 Questions

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Question 24

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?

Options:

Question 25

A very large organization is financed by both debt and equity. It evaluates all projects on the basis of their net present value (NPV) using an organization wide weighted average cost of capital as the discount rate.

For a small project, which TWO of the following would affect the project's cash flows AND the discount rate?

Options:

A.

Taxation rates

B.

Inflation rates

C.

Depreciation rates

D.

Changes in working capital

E.

The project's terminal value

Question 26

The following data are available for an investment centre for the latest period. Where appropriate the data have been adjusted to reflect economic values.

What cost of capital has been used to calculate the EVA?

Give your answer to the nearest percentage.

Options:

Question 27

A project requires an initial investment of $160,000 in an asset for which the annual depreciation charge will be $40,000. The forecast profits from the investment are as follows.

What is the payback period for the project in years? Give your answer to two decimal places.

Options:

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Exam Code: P2
Exam Name: Advanced Management Accounting
Last Update: Apr 29, 2024
Questions: 202
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