April, 2024 P2 Practice Questions

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Sample Question 1

When making an investment decision, which THREE of the following are reasons why receiving $1 today is preferable to receiving $1 in the future? 

A. Uncertainty 
B. Inflation 
C. Taxation 
D. Re-investment opportunities 
E. Depreciation 

Show Answer

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Sample Question 2

Company X is considering the launch of a new product. In order to compete in the market the selling price must be $100 per unit. Company X aims to achieve a sales margin of 25 per cent.Direct materials cost is $75 for each unit. It takes 15 minutes for workers to assemble each unit. Workers are paid $16 per hour. 5 per cent of paid time is idle. Overheads are absorbed at $6.50 per unit.  What is the value of any cost gap between the forecast total cost and the target cost?  

A. $10.71 
B. $5.50 
C. $10.50 
D. $9.10 

Show Answer

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Sample Question 3

Residual income is an appropriate performance measure for which type of responsibility centre? 

A. Cost centre 
B. Revenue centre 
C. Investment centre 
D. Profit centre 

Show Answer

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