P2 Exam Dumps : Advanced Management Accounting

Endure should buy X and Yfrom the other supplier.

Endure should buy X but produce Y themselves.

Endure should produce both X and Y themselves.

Endure should buy Y but produce X themselves.

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.

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.