100% Free CIMA CIMAPRO19-P02-1-ENG Practice Test Questions and Answers 2026

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Total 205 Questions | Updated On: May 21, 2026

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Question 1

Which TWO of the following conditions are necessary for a learning curve to apply?

A : The process must be simple.

B : The process must be complex.

C : There must be regular breaks in production.

D : Production must be machine intensive.

E : Production must be labor intensive.

Answer: A,B

Question 2

A manufacturing company is in the process of introducing just in time (JIT) and total quality management (TQM) into every aspect of its value chain.Which TWO of the following are appropriate changes to make to the support activities in the organization's value chain?

A : Inbound logistics would need to ensure that materials of appropriate quality are delivered on a just in time basis.

B : Operations would need to be carried out on a right first time basis as any failure could delay production.

C : After sales service would need to ensure that appraisal costs are kept to a minimum.

D : Procurement would need to arrange to purchase goods so that they are delivered as required.

E : Firm infrastructure would need to arrange appropriate training courses for staff.

F : Technology development would need to ensure that processes are continually improving.

Answer: A,D

Question 3

You have just assessed an investment proposal, involving an immediate cash outflow followed by a series of cash inflows over the next 7years, by deducing the NPV and the IRR. You have now discovered that you haveunderestimated the discount rate.Correcting the underestimation will have the following effect, relative to your original deductions:

A : NPV will reduce, IRR will not change

B : NPV and IRR will not change

C : NPV will increase, IRR will reduce

D : NPV and IRR will both increase

E : Not enough information given for an answer

Answer: A

Question 4

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 exploits areas of the market which are sensitive to price.

B : Penetration pricing because it can be used to rapidly build sales volume in mature markets.

C : Market skimming because it enables high prices to be charged to buyers who want the product as soon as possible.

D : Penetration pricing because it can be used to rapidly build sales volume in high growth markets.

Answer: C

Question 5

Which of the following statements are correct with regard to responsibility centres?Select ALL that apply.

A : Revenue centre managers have a lower level of decision-making authority than profit centre managers.

B : Revenue centre managers and profit centre managers are accountable for controllable costs only.

C : Profit centre managers and investment centre managers are responsible for the majority of operating costs incurred.

D : Investment centre managers have a higher level of managerial authority than profit centre managers.

E : Managers of profit centres have authority over the level of investment in working capital but managers of cost centres do not.

Answer: A,C,D

Page: 1 / 41

Total 205 Questions | Updated On: May 21, 2026

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