CIMA · objective_test
Advanced Management Accounting (P2)
P2 – Advanced Management Accounting — medium-term decision-making, advanced costing, pricing, and managing the performance of responsibility centres
90 minutes
Exam length
100 out of 150 scaled score (equivalent to approximately 67%)
Pass mark
Computer-based objective test
Format
On demand at Pearson VUE test centres worldwide or online, bookable up to 48 hours before the exam date
Sittings
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Advanced Management Accounting (P2) — overview
P2 is the Performance pillar at the Management level — where short-term costing from P1 grows into medium-term decision-making. You'll learn to manage costs and performance across responsibility centres, price products and services strategically, and apply advanced costing techniques to inform medium-term decisions.
The syllabus covers managing the costs of creating value, capital investment decision-making, managing and controlling the performance of organisational units, and risk and control in medium-term decisions. Topics include activity-based management, pricing strategies, transfer pricing, divisional performance measurement, capital investment appraisal (NPV, IRR, DCF under uncertainty), and the ethics of performance management.
P2 is heavier on numerical calculation than E2 and heavier on judgment than P1. The exam rewards students who can both crunch numbers accurately and interpret the outputs for decision-makers.
The Performance pillar is the costing, budgeting, and decision-making heart of management accounting. It's the foundation of roles such as Management Accountant, Commercial Analyst, Finance Business Partner, and anyone supporting short- or medium-term business decisions. Completing the Management level earns the CIMA Advanced Diploma in Management Accounting (CIMA Adv Dip MA) and qualifies you for roles such as Senior Management Accountant, Finance Manager, Business Partner, Financial Controller (assistant), Commercial Finance Analyst, and Group Reporting Accountant. It's also the gateway to the Strategic level and full CGMA status.
Learning outcomes
What you'll be able to do.
01
Managing the Costs of Creating Value
02
Capital Investment Decision Making
03
Managing and Controlling the Performance of Organisational Units
04
Risk and Control
Advanced Management Accounting (P2) syllabus
The content areas you'll cover in P2 and their assessment weightings.
Managing the Costs of Creating Value
20%
Managing the Costs of Creating Value
20%Capital Investment Decision Making
35%
Capital Investment Decision Making
35%Managing and Controlling the Performance of Organisational Units
30%
Managing and Controlling the Performance of Organisational Units
30%Risk and Control
15%
Risk and Control
15%Subscription includes
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Advanced Management Accounting (P2) exam format
How P2 is assessed, how long you have, and what to expect on exam day.
Duration
90 minutes
Format
Computer-based objective test
Structure
60 equally-weighted questions drawn from all content areas in the blueprint. Item types include multiple choice, multiple response, fill-in-the-blank (number entry), and drag-and-drop. All questions are independent — partial marks are not available. Candidates may answer in any order and navigate between questions.
Sittings
On demand at Pearson VUE test centres worldwide or online, bookable up to 48 hours before the exam date
Pass mark
100 out of 150 scaled score (equivalent to approximately 67%)
How to pass Advanced Management Accounting (P2)
Expert tips from Learnsignal's CIMA tutors for passing P2.
Responsibility accounting is foundational
Cost, revenue, profit, and investment centres — know the differences, how each is measured (ROI, RI, EVA), and the ethical issues that arise from manipulating performance measures.
Capital investment appraisal deep-dive
NPV, IRR, MIRR, payback, DCF with uncertainty — all examinable at a greater depth than P1. Practise NPV calculations with tax, working capital, and inflation adjustments.
Advanced pricing strategies
Target costing, lifecycle costing, value-based pricing, transfer pricing — all tested. Transfer pricing in particular has both calculation and conceptual dimensions.
Risk and uncertainty in medium-term decisions
Sensitivity analysis, scenario analysis, decision trees, simulation, expected values with utility — know the full toolkit and when each is most appropriate.
Know the behavioural consequences
Every technique has behavioural implications. Target costing affects design decisions; transfer pricing affects divisional behaviour; RI vs ROI affects investment decisions. Be ready to discuss these.
Activity-based management is more than ABC
ABC (costing) is P1. ABM (management) extends ABC into making business decisions — customer profitability, process improvement, pricing. Know the distinction.
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See CIMA pricing →Advanced Management Accounting (P2) — frequently asked questions
Common questions about P2 — what's covered, how it's assessed, and how to prepare.
What does the P2 exam consist of?+
P2 is a 90-minute computer-based objective test with 60 equally-weighted questions. You'll see multiple choice, multiple response, fill-in-the-blank, and drag-and-drop items. All questions are independent and partial marks are not available — every element of a question must be answered correctly for it to be marked correct.
What's the pass mark for P2?+
The pass mark for every CIMA objective test is a scaled score of 100 out of 150 — roughly 67%. Scaled scoring ensures different versions of the exam are comparable in difficulty, so your raw mark and your scaled mark can differ slightly.
When can I sit P2?+
CIMA objective tests are available on demand at Pearson VUE test centres worldwide or online. You can book up to 48 hours before the exam date, subject to availability. There are no fixed sitting windows.
How long should I spend studying P2?+
CIMA's indicative study time is around 150 hours of structured study per objective test, though this varies by student. Most part-time students take 3–4 months per paper. Management Level students often study two objective tests in parallel to keep momentum.
What's the difference between P2 and the case study?+
P2 is a stand-alone objective test that assesses the specific subject's content. The Management Level case study is a synoptic assessment that brings together content from all three Management Level objective tests into a real-world business simulation. You must pass all three objective tests before sitting the case study.
Do I need the P2 knowledge to sit the other Management Level papers?+
The three Management Level objective tests are designed to be independent — you can sit them in any order. That said, many students find that the content overlaps in subtle ways, so understanding all three gives the strongest foundation for the case study.
How is the scaled score calculated?+
CIMA uses scaled scoring to ensure comparable difficulty across different versions of each exam. Your raw score is converted using a formula that accounts for the difficulty of the specific questions you saw. You'll see the scaled score on your results dashboard within 48 hours of sitting.
What does Learnsignal provide for P2?+
Your Learnsignal subscription includes recorded lectures by CIMA tutors, interactive quizzes, structured topic notes, a full question bank of past-style questions, and timed mock exams — all mapped to the current CIMA Professional Qualification Syllabus and accessible 24/7.
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