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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 about learning curves is correct?

Options:

A.

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

B.

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

C.

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

D.

The learning index will always have a positive value.

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Question 2

A long established organization has recognised the need to make urgent changes to the way it operates in order to remain competitive. The organization wishes to dramatically improve its performance through a fundamental rethinking and radical redesign of its existing activities.

Which of the following techniques should be used to achieve this?

Options:

A.

Functional analysis

B.

Kaizen costing

C.

Business process re-engineering

D.

Process innovation

Question 3

SkillWeave Industries are focused on managing the risk of selling their cars to the region due to economic turmoil, and have now begun using funds from sales in the region to fund supplier purchases from that region to

reduce the risk from the volatile currency. However, SkillWeave want to go a step further and make the risk even less sizeable.

Which of the following is a method by which SkillWeave can operate in the market and transfer the risk of exchange rate exposure to another party?

Options:

A.

Invoice international sales in domestic currency

B.

Temporarily stop operating in that target market

C.

Arrange a forward foreign exchange rate contract agreeing to buy a given amount of the foreign currency in 3 months time for a fixed exchange rate based on current rates

D.

Put a sale on all vehicles stationed in the region to clear stock quickly

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