CIMA P2 Formula Sheet
The key formulas for CIMA P2 (Advanced Management Accounting) on a single A4 page, free to download and print. Built to the paper's current examinable scope.
P2 Formula Sheet · PDF · 1 page · A4 · print-ready
Download the P2 formula sheetUpdated 25 September 2026: the Σ in expected value now prints correctly, the ROI and RI note is clearer, and the sheet has been re-typeset with proper maths symbols. If you printed an earlier copy, please download it again.
The formulas on the P2 sheet
The full sheet, reproduced as text so you can revise on screen. Last checked September 2026. Spotted an error? Report it and it will be corrected.
Transfer Pricing
- Minimum price (selling division) = Marginal cost + opportunity cost of internal sale
- Maximum price (buying division) = Lower of external purchase price and NRV to buyer
Divisional Performance
- ROI = Controllable profit ÷ Controllable net assets × 100
- Residual income = Controllable profit − (Net assets × Cost of capital %)
- ROI can cause goal-incongruent decisions on projects near the hurdle rate; RI avoids this
Capital Investment Appraisal (Advanced)
- MIRR: reinvest cash inflows at reinvestment rate, discount outflows at finance rate
- MIRR = (Terminal value of inflows ÷ PV of outflows)1/n − 1
- Profitability index = PV of future cash flows ÷ Initial investment
- Used to rank projects under single-period capital rationing
Standard Costing — Advanced Variances
- Planning variance = Original standard vs Revised (ex-post) standard
- Operational variance = Revised standard vs Actual result
- Mix (per input) = (Actual total input × std mix % − Actual qty) × Std price
- Yield = (Actual output − Std output for actual input) × Std cost/unit output
Risk & Uncertainty
- Expected value = Σ (Outcome × Probability)
- Used to evaluate decisions under risk, not for one-off unique decisions
Non-Financial & Balanced Scorecard Ratios
- Asset turnover = Revenue ÷ Net assets
- ROI = Profit margin × Asset turnover
How to use it
A formula sheet is a revision aid, not a substitute for practice. Reading formulas builds recognition; applying them under time pressure builds recall, and it's recall the exam tests. The most effective way to use this sheet is alongside questions: attempt a question first, then check the sheet only when you're stuck, rather than working with it open in front of you.
Print it and keep it beside you while you work through P2 questions. Once you stop reaching for it, you know the formulas are in place.
Test yourself on P2 with 150 free practice questions, worked explanations for every answer, and a timed mock exam mode. Start P2 practice →
This sheet is an original compilation of standard formulas mapped to CIMA P2's current examinable scope. It is a revision aid only and is not a substitute for the official formulae and rates provided in your exam. Looking for another paper? See all CIMA formula sheets. GoQualified is not affiliated with CIMA.