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CIMAPRO19-P02-1 PDF
CIMA CIMAPRO19-P02-1 PDF

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Q1.

An electronics company sells a range of tablet computers. Tablet computers come complete with an operating system that is regarded as the market leader. The company aims to launch a new version of its hardware every eighteen months and a major update to its software every three years. The latest version of the tablet computer is always sold at a higher price, but the older version that has been replaced is then sold for a time at a discounted price.

Which pricing model does this company appear to be using?

Answer: D
Q2.

A company is classifying its quality costs to prepare a quality cost report. Which of the following are conformance costs?

Select ALL that apply.

Answer: C, D
Q3.

Which of the following would change if the cost of capital of a proposed project was increased?

Answer: D
Q4.

Division A and Division B are divisions of the same group. Division A transfers all of its output to Division B.

Which THREE of these alternative transfer pricing bases will prevent any cost inefficiencies in Division A being passed on to Division B?

Answer: A, D, F
Q5.

In accordance with a just-in-time (JIT) philosophy, which of the following is regarded as a value added activity?

Answer: D

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