Valid P2 Exam Q&A PDF P2 Dump is Ready (Updated 205 Questions) [Q112-Q129]

Valid P2 Exam Q&A PDF P2 Dump is Ready (Updated 205 Questions)

Exam Questions and Answers for P2 Study Guide

NEW QUESTION 112
A small company currently uses an information system that was implemented several years ago and is based entirely on internal dat a. The company is considering replacing it with a more up to date system. It has been suggested that the new system should include the use of big data.
Which TWO of the following statements are correct?

A. Big data can provide a small company with useful information in the quest for competitive advantage.
B. Big data is concerned solely with a dramatic increase in the amount of internal data stored.
C. It is not possible to value the potential benefits to a small company of an improved information system.
D. Big data can be used by a small company to identify new opportunities.
E. Big data is only applicable to large companies which have substantial funds to invest in information systems.

Answer: A,D

NEW QUESTION 113
An organization wants to increase the use value that customers place on one of its products - a laptop computer.
Which of the following actions, taken to increase the value to the customer, would increase the product's use value?
Select ALL that apply.

A. Changing the color of the computer's case.
B. Fitting advanced components to improve the computer's performance.
C. Launching a marketing campaign designed to build the company's brand.
D. Installing a touch screen to improve the computer's functionality.
E. Adopting a premium pricing strategy for the computer.

Answer: B,D

NEW QUESTION 114
In order to support decision making, management accounting information categorizes costs in a variety of ways.
Responsibility accounting primarily distinguishes between costs on the basis that they are either:

A. relevant or non-relevant costs
B. fixed or variable costs
C. sunk or opportunity costs
D. controllable or uncontrollable costs

Answer: D

NEW QUESTION 115
For a pharmaceutical manufacturer, in which perspective of the Balanced Scorecard should the performance measure 'number of patents granted during the year' be included?

A. Financial
B. Internal business processes
C. Innovation and learning
D. Customer

Answer: C

NEW QUESTION 116
LL produces an item, the Z, for which the demand curve is estimated to be:
P = 10 - 0.0001Q
where, P is the unit price in $ and Q is the annual sales volume in units; Marginal revenue (MR) = 10 - 0.0002Q The variable cost of producing the Z is $2 per unit. The annual fixed costs of production are $110,000.
What is the profit maximizing output level?

A. 40,000 units
B. 45,000 units
C. 50,000 units
D. 35,000 units

Answer: A

NEW QUESTION 117
A company is considering four mutually exclusive projects. There are three possible future demand conditions but the company has no idea of the probability of each of these demand conditions occurring. The forecast net present values (NPVs) of each of the four projects, under each of the three possible future demand conditions, are as follows.

Using the maximax criterion, which investment should be selected?

A. Investment A
B. Investment C
C. Investment D
D. Investment B

Answer: A

NEW QUESTION 118
A company has just received the latest in a series of annual payments; this payment was $620. The annual payments are expected to continue for three more years with each payment being increased by the expected rate of inflation. The real cost of capital is 8% per year and the expected rate of inflation is
6% per year.
What is the present value of the future payments the company expects to receive?
Give your answer to the nearest $.

Answer:

Explanation:
$1598

NEW QUESTION 119
A project requires an initial investment of $160,000 in an asset for which the annual depreciation charge will be $40,000. The forecast profits from the investment are as follows.

What is the payback period for the project in years? Give your answer to two decimal places.

Answer:

Explanation:
2.33 years

NEW QUESTION 120
A positive net present value (NPV) has been calculated for a project to launch a new product. An additional calculation is required to identify the sensitivity of the NPV to changes in the forecast total sales volume.
The present value of which of the following would be used in the calculation?

A. Contribution
B. Operating profit
C. Net profit
D. Fixed overheads

Answer: A

NEW QUESTION 121
Using the Value Chain model for a manufacturing company, place the correct primary activity classification against each of the activities described.

Answer:

Explanation:

NEW QUESTION 122
The cash flows from a project are detailed in the table below.

To the nearest 1%, what is the project's internal rate of return?

A. 46%
B. 115%
C. 8%
D. 15%

Answer: C

NEW QUESTION 123
Kaizen costing is being used by an organization to gradually reduce the unit cost of one of its products in order to achieve a 20% mark up on the product's cost.
The selling price of the product must be $72 per unit and this selling price has been maintained for two years.
Two years ago the product's cost was $3 per unit more than its selling price. Kaizen costing has achieved an 8% reduction from the previous period's unit cost in each of the past two years. The organization expects to continue to achieve the same rate of cost reduction next year.
Which of the following statements provides an accurate analysis of the extent to which Kaizen costing has been successful in achieving the required unit cost for the product?

A. Kaizen costing has not yet achieved the required unit cost of $57.60 because a greater rate of reduction in costs was needed.
B. The current cost is $63.48 per unit and the required unit cost will be achieved next year.
C. The current cost is $63.00 per unit and the required unit cost will be achieved next year.
D. Kaizen costing has successfully achieved the necessary cost reduction.

Answer: B

NEW QUESTION 124
Company D is about to launch an innovative and unique product which may face direct competition within three years. The company needs to achieve a rapid payback on all investments because it has limited access to external finance.
Which is the most appropriate pricing strategy for company D's new product, and for what reason?

A. Market skimming because it enables high prices to be charged to buyers who want the product as soon as possible.
B. Market skimming because it exploits areas of the market which are sensitive to price.
C. Penetration pricing because it can be used to rapidly build sales volume in mature markets.
D. Penetration pricing because it can be used to rapidly build sales volume in high growth markets.

Answer: A

NEW QUESTION 125
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?

A. Kaizen costing
B. Process innovation
C. Business process re-engineering
D. Functional analysis

Answer: C

NEW QUESTION 126
Product WB currently sells for $13 per unit. Annual demand at that price is 20,000 units. If the price increases to $15, the annual demand falls by 500 units.
What is the formula for the demand curve?

A. Qd = a - b(P
B. Q = a - bP
C. P = f(Q).
D. P = a -b(Q)

Answer: A

NEW QUESTION 127
The following information is available for four investment projects:

A discount rate of 12% is appropriate for all four projects. The organization is subject to capital rationing and wishes to prioritise the projects using the profitability index (PI).
Which project has the highest PI?