CIMA : P2 Questions & Answers

Last Updated: Oct 11, 2026

No. of Questions: 205 Questions & Answers with Testing Engine

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CIMA P2 Practice Q&A's

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Certification vendors revise their blueprints without much warning, and stale material is worse than none at all. ActualTorrent reviews and updates its P2 practice questions on a continuous basis, with 365 days of free updates, so the 205 items you study stay aligned with the live CIMA Advanced Management Accounting exam.

CIMA P2 Exam Overview:

Certification Vendor:Chartered Institute of Management Accountants (CIMA)
Exam Name:P2 Advanced Management Accounting
Exam Number:CIMAPRO19-P02-1
Related Certifications:CIMA Professional Qualification – Management Level
Advanced Diploma in Management Accounting (CIMA Adv Dip MA)
Exam Duration:90 minutes
Real Exam Qty:60
Available Languages:English
Passing Score:70% (objective test pass standard)
Exam Format:Drag and Drop Questions, Number Entry Questions, Computer-based Objective Test, Multiple Choice Questions
Sample Questions: DOWNLOAD DEMO
Exam Way:90-minute on-demand computer-based objective test available at Pearson VUE test centres or via remote online proctoring
Pre Condition:Completion of Operational Level is required before attempting Management Level exams. E2, P2, and F2 objective tests must be passed before attempting the Management Case Study exam.
Official Syllabus URL:https://www.aicpa-cima.com/resources/landing/management-level

CIMA P2 Exam Syllabus Topics:

SectionWeightObjectives
Risk and control15%- Risk analysis and control systems
  • 1. Analyse risk and uncertainty in medium-term decision-making
  • 2. Analyse types of risk in the medium term
Managing the costs of creating value20%- Cost management and value creation
  • 1. Apply cost management and cost transformation methodology
  • 2. Compare and contrast quality management methodologies
  • 3. Apply value management techniques
Capital investment decision-making35%- Investment appraisal and decisions
  • 1. Analyse data required for decision-making
  • 2. Discuss pricing strategies
  • 3. Apply investment appraisal techniques
  • 4. Explain steps and issues in decision-making
Managing and controlling the performance of organisational units30%- Performance management and control
  • 1. Analyse performance of responsibility centres
  • 2. Explain behavioural and transfer pricing issues
  • 3. Discuss approaches to performance and control

CIMA P2 Exam: Everything You Wanted to Ask

The P2 exam is the official CIMA exam for CIMA Advanced Management Accounting. Passing it earns you the CIMA Management credential, which sits at the Management Level (Professional Qualification) level. It is also connected to CIMA Professional Qualification – Management Level, Advanced Diploma in Management Accounting (CIMA Adv Dip MA), so what you learn carries over if you plan to pursue those paths as well. Employers treat the certification as verified proof of skill, which is why structured preparation with ActualTorrent's practice questions pays off.

The P2 exam contains 60 questions, and the time limit is 90 minutes. Translate that into a pacing plan before exam day: know roughly how long you can afford per item, flag anything that stalls you, and circle back at the end instead of burning minutes. Two or three full timed sessions in ActualTorrent's test engine will teach you that rhythm far better than untimed reading ever will.

Completion of Operational Level is required before attempting Management Level exams. E2, P2, and F2 objective tests must be passed before attempting the Management Case Study exam. Eligibility details can change, so before you register, confirm the current requirements on the official exam page: https://www.aicpa-cima.com/resources/landing/management-level.

Yes. ActualTorrent offers a free PDF demo of the CIMA Advanced Management Accounting practice questions on the samples page, so you can judge the format and quality yourself before paying anything. Every purchase also includes 365 days of free updates, and after the product expires you can extend the update service at a 50% discount from within your member zone.

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The official CIMA Advanced Management Accounting blueprint is organized into 4 domains. The leading areas are:

  • Managing the costs of creating value — 20% of the exam
  • Managing and controlling the performance of organisational units — 30% of the exam
  • Capital investment decision-making — 35% of the exam

For the complete domain-by-domain breakdown with every subtopic, see the Exam Topics outline above.

CIMA Advanced Management Accounting Sample Questions:

Question #1

A goal congruent transfer price will always:

  • A. motivate divisional managers by maximising divisional autonomy.
  • B. align the decision making of divisional managers with the objectives of the organization as a whole.
  • C. align the decision making of divisional managers with the maximization of divisional profit.
  • D. ensure that profits are shared equally between the supplying and receiving divisions.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #2

Which TWO of the following actions taken during the budgetary planning process will result in the creation of budgetary slack?

  • A. Overestimating revenues
  • B. Underestimating costs
  • C. Overestimating profit
  • D. Underestimating revenues
  • E. Overestimating costs
Reveal Solution  Discussion  0

Correct Answer: D,E  🗳️

Question #3

A division of company XYZ has reported an operating profit of $350,000 and its residual income (RI) has been calculated as $60,000. The company's cost of capital is 12%.
The division's return on investment (ROI) is:

  • A. 2.5%
  • B. 14.5%
  • C. 12.0%
  • D. 17.0%
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #4

One aspect of life cycle costing is the recognition of the fact that during the design or development stage a large proportion of many products' life cycle costs are:

  • A. wasted
  • B. under absorbed
  • C. determined
  • D. amortised
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #5

A project with a 6 year life generates a positive net present value of $1,100. The discount rate is 8%.
To the nearest $, the equivalent annual benefit is:

  • A. $693
  • B. $177
  • C. $238
  • D. $5,085
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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