P2 Exam Dumps : Advanced Management Accounting

It is worthwhile for a company to sell further units when the marginal revenue is greater than the marginal cost.

Price is the only factor affecting the demand for products and services.

Premium pricing is possible when there is a measure of product or service differentiation.

Loss leadership pricing is appropriate for a new product which is not part of a range of products.

Demand functions can be predicted accurately and the relationship between price and quantity demanded is always constant.

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.

Actual variable cost

Market price

Standard variable cost

Full cost plus