100+ Free CPA Canada Core 2 Practice Questions
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Key Facts: CPA Canada Core 2 Exam
4 hours
Exam Duration
CPA Canada Core Modules
~75
Objective Questions
CPA PEP Core 2 Format
60 min
Integrative Case
CPA PEP Core 2 Format
50-70%
Management Accounting Weight
Core Modules Blueprint
15-20%
Finance Weight
Core Modules Blueprint
8 weeks
Module Length
CPA PEP
CPA PEP Core 2 is a 4-hour module final exam with roughly 75 objective-format questions (multiple choice and other objective types) plus one 60-minute integrative case. The exam is weighted heavily toward Management Accounting (about 50-70%), followed by Finance (about 15-20%), with Strategy and Governance and a small Financial Reporting component integrated throughout. Assessment follows the CPA Competency Map rather than only the syllabus, so candidates may see topics not explicitly covered in module practice. There is no fixed published passing percentage; competence is determined through CPA Board of Examiners standard setting, and fees are set by each regional CPA delivery body.
Sample CPA Canada Core 2 Practice Questions
Try these sample questions to test your CPA Canada Core 2 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1A company sells a product for $40 per unit with variable costs of $24 per unit. Fixed costs are $96,000. How many units must be sold to break even?
2Under a contribution-margin income statement, which cost behaviour classification is used to organize expenses?
3A firm has a contribution margin ratio of 40% and fixed costs of $200,000. What sales revenue is required to earn a target operating income of $80,000?
4Under activity-based costing (ABC), overhead is assigned to products primarily based on:
5A company budgeted 10,000 units but produced 9,000. Budgeted fixed manufacturing overhead was $120,000. Using a denominator of 10,000 budgeted units, what is the fixed overhead production-volume variance?
6Standard direct materials are 3 kg per unit at $5/kg. The company produced 2,000 units using 6,300 kg costing $30,240. What is the direct materials price (rate) variance?
7Which costing approach treats fixed manufacturing overhead as a period cost expensed when incurred, rather than as part of inventory?
8In a period where production exceeds sales, operating income under absorption costing compared with variable costing will generally be:
9A company can sell 5,000 units of a special order at $18 each. Variable cost is $13 per unit and there is idle capacity. Avoidable fixed costs of the order are $8,000. Should the order be accepted on financial grounds?
10Which of the following is a sunk cost in a decision to replace an old machine?
About the CPA Canada Core 2 Exam
CPA Canada Core 2 is the second Core module of the CPA Professional Education Program, focused on Management Accounting, planning, and control. The 4-hour final exam combines about 75 objective-format questions with a 60-minute integrative case that emphasizes Management Accounting while integrating one or two other technical competency areas.
Assessment
Question count not published by the exam provider
Time Limit
4-hour computer-based module examination
Passing Score
No fixed published percentage; competence is judged through the CPA Board of Examiners standard-setting process.
Exam Fee
Set by each provincial/regional CPA body; CPA Canada does not publish one national Core 2 fee. (CPA Canada / regional CPA delivery bodies)
CPA Canada Core 2 Exam Content Outline
Management Accounting (cost, planning, control)
Cost management, CVP and break-even, costing systems, budgeting and planning, variance analysis, performance measurement, transfer pricing, capital budgeting, and management decision-making.
Finance
Cost of capital and WACC, capital budgeting evaluation, valuation, working-capital and treasury management, financing decisions, and financial risk management including hedging.
Strategy and Governance
Corporate governance, board and audit-committee roles, enterprise risk management, strategy formulation, and the link between strategy and management control.
Financial Reporting (integrated)
Inventory and revenue recognition, statement of cash flows, ratio analysis, and the reporting effects of management accounting choices under IFRS and ASPE.
Audit, Assurance and Taxation (integrated)
Internal controls and segregation of duties, reliability of cost data, professional ethics, and Canadian tax effects such as CCA tax shields within capital budgeting.
How to Pass the CPA Canada Core 2 Exam
What You Need to Know
- Passing score: No fixed published percentage; competence is judged through the CPA Board of Examiners standard-setting process.
- Assessment: Question count not published by the exam provider
- Time limit: 4-hour computer-based module examination
- Exam fee: Set by each provincial/regional CPA body; CPA Canada does not publish one national Core 2 fee.
Keys to Passing
- Work through all 100 available questions
- Review every answer and explanation
- Track weak areas and revisit them
- Use our AI tutor for tough concepts
CPA Canada Core 2 Study Tips from Top Performers
Frequently Asked Questions
How many questions are on the CPA Canada Core 2 exam?
The Core 2 final exam is four hours and includes approximately 75 objective-format questions, which include multiple choice and other objective types, plus one 60-minute integrative case. CPA Canada does not fix an exact published count for every writing.
What competency areas does Core 2 cover?
Core 2 is weighted heavily toward Management Accounting (about 50-70%), followed by Finance (about 15-20%), with Strategy and Governance and a small Financial Reporting component integrated throughout. The case mainly assesses Management Accounting and integrates one or two other areas.
Is the CPA Core 2 exam multiple choice?
The objective portion uses multiple choice along with other objective formats such as matching and short numeric answers. The separate 60-minute integrative case requires a written response. Our free practice bank focuses on the fully MCQ-preppable objective knowledge.
What is the passing score for CPA Core 2?
CPA Canada does not publish a fixed passing percentage. Candidates must demonstrate competence across the objective questions and the integrative case, evaluated through the CPA Board of Examiners standard-setting process.
Do I need to pass Core 1 before Core 2?
Yes. Core 1 (Financial Accounting and Reporting) is the prerequisite module and must be completed successfully before challenging Core 2 in the CPA Professional Education Program.
How much study time does CPA Core 2 require?
The module runs about eight weeks, and candidates commonly invest 150-200 hours on readings, online quizzes, practice cases, integrated problems, and mock exams, with most time spent on Management Accounting.
Is the exam based on the syllabus or the Competency Map?
The exam is based on the CPA Competency Map rather than only the module syllabus, so some tested topics may not appear in the practice cases or integrated problems. Broad competency coverage is recommended.
How much does CPA Core 2 cost?
Module and exam fees are set by each provincial or regional CPA delivery body, such as CPA Western School of Business or CPA Ontario, so confirm current pricing with the body that administers your program.