P2 Exam Dumps : Advanced Management Accounting

It adjusts the relevant cash flows of a project to reflect the time value of money. The discount rate used is always the company's weighted average cost of capital.

It adjusts the relevant cash flows of a project to reflect the time value of money. The discount rate used reflects the risk of the project.

It adjusts the relevant profits of a project to reflect the time value of money. The discount rate used reflects the risk of the project.

It adjusts the relevant cash flows of a project after the deduction of depreciation charges to reflect the time value of money. The discount rate used is always the company's weighted average cost of capital.

The learning index for an 80% learning curve is calculated as log 2 divided by log 0.8.

The learning index for an 80% learning curve is calculated as log 0.8 divided by log 2.

A 90% learning curve indicates a faster rate of learning than an 80% learning curve.

The learning index will always have a positive value.

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

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

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

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