Chartered Institute of Management Accountants (CGMA) · Management level
CIMA P2 Advanced Management Accounting: mock exams and practice questions
234 original exam-style questions for CIMA P2 Advanced Management Accounting, with full timed mock exams in the real format and an explanation for every answer. Free for everyone until 31 January 2027.
- 234practice questions
- 4syllabus areas
- 90 minutesfull mock, like the real exam
CIMA P2 exam format
90 minutes, computer-based objective test (60 questions). The pass mark is 70%.
| Section | Format | Marks |
|---|---|---|
| Objective test | 60 questions: multiple choice, multiple response and number entry | 60 |
| Total | 60 |
Syllabus areas covered
- A · Managing the costs of creating value48 questions
- B · Capital investment decision making84 questions
- C · Managing and controlling the performance of organisational units72 questions
- D · Risk and control30 questions
Try 3 free CIMA P2 questions
Real Fincora questions, with the full explanation. Sign up free for the full bank and timed mocks.
Sample question 1 · A · Managing the costs of creating value
Which of the following statements about life cycle costing is correct?
- A Most of a product's life cycle costs are incurred during the production phase, so cost control should concentrate on that phase
- B A large proportion of a product's life cycle costs is committed at the design stage, even though much of the cost is incurred later
- C Life cycle costing reports costs period by period, in the same way as traditional management accounts
- D Pre-production costs such as research and development are excluded, because they are sunk by the time production begins
Show the answer
Answer: B. Life cycle costing tracks and accumulates a product's costs and revenues over its entire life, from research and design through production and sale to withdrawal and decommissioning.
A key insight is the difference between cost commitment and cost incurrence: a large share of total life cycle cost is committed at the design stage, even though it is spent later. That is why cost management effort is most effective before production starts. Traditional period-based reporting hides this because it writes off R&D as it is incurred and never shows the product's full cost.
Sample question 2 · B · Capital investment decision making
Which of the following is a benefit of carrying out post-completion audits of capital projects?
- A It allows the original investment decision to be reversed without cost once the audit is complete
- B It replaces the need to monitor the project's costs and progress while it is being implemented
- C It encourages managers to make realistic forecasts and helps improve the appraisal of future projects
- D It ensures that every project, however small, is reviewed in full detail regardless of the cost of the audit
Show the answer
Answer: C. A post-completion audit (PCA) compares a project's actual costs, benefits and outcomes with the forecasts made when it was approved. Its benefits include:
- discouraging over-optimistic forecasts, because managers know they will be checked
- improving future forecasting and appraisal through lessons learned
- identifying projects that should be changed or abandoned
Its drawbacks include cost, the difficulty of isolating a project's cash flows, and the risk of a blame culture that discourages sensible risk-taking. Because of the cost, PCAs are usually applied selectively.
Sample question 3 · C · Managing and controlling the performance of organisational units
Ferncliffe Hotels is building a balanced scorecard. Which of the following measures belongs to the learning and growth (innovation and learning) perspective?
- A Revenue per available room
- B Percentage of guests rating their stay as excellent
- C Average time taken to check in a guest
- D Percentage of staff completing training on the new booking system
Show the answer
Answer: D. Kaplan and Norton's balanced scorecard has four perspectives:
| Perspective | Question | Example here |
|---|---|---|
| Financial | How do we look to shareholders? | Revenue per available room |
| Customer | How do customers see us? | % of guests rating stay excellent |
| Internal business process | What must we excel at? | Check-in time |
| Learning and growth | Can we continue to improve and create value? | % of staff trained on new system |
The perspectives are linked: better-trained staff improve processes, which improves customer satisfaction and, in turn, financial results.
Practise CIMA P2 the way you'll sit it
Timed mocks, a question navigator and flags, then your score by syllabus area so you know what to revise next.