Free CIMA CIMAPRA19-P02-1-ENG Practice Exam Questions and Answers 2026

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Total 205 Questions | Updated On: Apr 02, 2026

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Question 1

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

A : Internal Failure Costs

B : External Failure Costs

C : Prevention Costs

D : Appraisal Costs

Answer: C,D

Question 2

A manufacturing company has recently introduced a Total Quality Management (TQM) system. The company has invested heavily in the education and training of its staff, in addition to implementing new product design engineering. There is a plan to sample units from each batch of products manufactured to test for errors, although this has not yet been implemented due to budget constraints.The company is experiencing high levels of customer complaints, with many faulty units being returned by the customer for refund or replacement. Sales revenue has fallen recently, mainly due to negative press coverage linked to dissatisfied customers.Select the statement MOST likely to apply.

A : The high level of external failure costs is the result of a lack of expenditure on prevention costs.

B : The high level of internal failure costs is the result of a lack of expenditure on appraisal costs.

C : The high level of external failure costs is the result of a lack of expenditure on appraisal costs.

D : The high level of internal failure costs is the result of a lack of expenditure on prevention costs.

Answer: C

Question 3

In order to remain competitive an organization wishes to achieve cost savings for one of its existing products.Which of the following correctly describes methods which the organization can use to achieve these cost savings?Select ALL that apply.

A : Functional analysis is carried out only on existing products and is concerned only with minimizing the cost of the originally defined functions of a product.

B : Value engineering is a fundamental rethinking and radical redesign of an organization-s existing processes.

C : Target costing is continuously setting new stretch targets while the product is in production.

D : Value analysis is examining a product-s costs in order to achieve its purpose at a reduced cost while maintaining its reliability and quality.

E : Kaizen costing is seeking to make cost savings by continuously making small incremental cost reductions while the product is in production.

Answer: A,D

Question 4

A company is investing $150,000 in a project which will yield an annual cash inflow of $40,000 for eight years. The company's cost of capital is 10%.To the nearest $100, what is the project's equivalent annual net present value?

A : $11,900

B : $7,900

C : $63,400

D : $21,300

Answer: A

Question 5

One of an investment centre's products is sold on an external market. Output is limited because the specialist machine that manufactures the product is operating at full capacity.Current data for the product are as follows.

A : $21,400

B : $17,800

C : $23,900

D : $26,160

Answer: A

Page: 1 / 41

Total 205 Questions | Updated On: Apr 02, 2026

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