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P2 Exam Dumps : Advanced Management Accounting

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Advanced Management Accounting Questions and Answers

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Question 1

Which of the following statements is correct in respect of the key feature of dual pricing?

Options:

A.

The selling price recorded by the selling division is higher than the cost recorded by the receiving division.

B.

Internal customers are offered trade discounts depending on the number of units they purchase.

C.

Internal transfers are priced at marginal cost and a lump sum payment is made subsequently to contribute to fixed costs.

D.

Internal customers are charged a lower price than external customers to reflect savings in distribution costs.

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Question 2

A company has a cost of capital of 12% and a maximum of $20 million to invest. It has identified three possible investment projects, none of which is divisible, as follows.

Which project(s) should the company invest in?

Options:

A.

Project 1 only

B.

Project 2 only

C.

Project 3 only

D.

Projects 1 and 3 only

Question 3

Using Porter's value chain, place the tokens to correctly categories the following activities of a manufacturing company.

Options:

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