CIMAPRA17-BA2-1 Exam - Topic 1 Question 41 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 41
Topic #: 1

Refer to the exhibit.

A company manufactures three components on the same machine, on which there is spare capacity. An external supplier has offered to supply all of the company's requirements of the components. Data for the components are as follows:

Which components should be purchased from the external supplier?

AComponent X only

BComponents X and Z

CComponents Y and Z

DComponents X, Y and Z

Show Suggested Answer

Suggested Answer: D

by My at Sep 16, 2022, 05:27 AM

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Graciela

4 months ago

I think purchasing X and Z makes the most sense!

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Dorsey

4 months ago

Components Y and Z have lower production costs.

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Jeniffer

4 months ago

Wait, are we sure about that? Seems risky.

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Kate

4 months ago

Totally agree, X is the way to go!

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Tiffiny

4 months ago

Component X has the highest cost savings.

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Gerald

5 months ago

I think we need to look at the variable costs for each component. If Component Y has high costs, it might be better to buy it instead.

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Man

5 months ago

I feel a bit uncertain about the spare capacity aspect. Does that mean we should definitely consider purchasing more components?

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Fanny

5 months ago

This question seems similar to one we practiced where we had to decide based on contribution margins. I think I might lean towards Components X and Z.

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Omega

5 months ago

I remember we discussed how to analyze the cost of manufacturing versus purchasing, but I'm not sure which components are cheaper to buy.

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Delpha

5 months ago

This seems like a straightforward question about email sending reputation. I think the key is to look for the option that provides the most comprehensive solution.

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Elenora

5 months ago

Hmm, this seems like a tricky one. I'll need to think carefully about the different points where a Security Profile can come into play.

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Tegan

5 months ago

I'm a little confused on this one. Is assigning to a group really the recommended approach, or is there something else I'm missing? I want to make sure I understand this properly before answering.

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Jacki

9 months ago

I'm going to have to go with B) Components X and Z. The numbers don't lie, and it's clear the external supplier has a significant cost advantage for those two components. Plus, it frees up the company's resources to focus on their core competencies. Now, where's the vending machine? I need a snack to fuel my brain power.

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Tawny

7 months ago

Let's grab a snack from the vending machine and celebrate making a strategic decision for the company.

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Roxane

8 months ago

I think it's a smart move to free up resources and streamline operations by purchasing Components X and Z.

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Lizette

8 months ago

Definitely, it makes sense to outsource those components and focus on what the company does best.

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Lorenza

8 months ago

I agree, B) Components X and Z seem to be the best choice based on the cost advantage.

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Jules

9 months ago

Hmm, this is a tough one. I'm leaning towards C) Components Y and Z, since the data shows the company has a much higher manufacturing cost for those components compared to the external supplier. But I'm curious to hear what the other candidates think. Anyone want to arm-wrestle for the right answer?

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Joaquin

10 months ago

D) Components X, Y and Z seems like the best option to me. Why bother manufacturing anything in-house when the external supplier can provide everything at a lower cost? Might as well go for the full outsourcing solution and focus on other parts of the business.

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Ivette

8 months ago

Definitely, outsourcing all components can help reduce costs and streamline operations.

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Blondell

9 months ago

I think it's a smart move to focus on other areas of the business and let the supplier handle the manufacturing.

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Whitley

9 months ago

I agree, it makes sense to outsource all three components to the external supplier.

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Loreen

10 months ago

I think the answer is B) Components X and Z. The data shows that the external supplier can provide the components at a lower cost than the company's manufacturing cost. It makes sense to outsource those components to take advantage of the cost savings.

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Tresa

8 months ago

That's a good point. It seems like the best decision would be to purchase Components X and Z from the external supplier based on the cost savings.

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Krissy

8 months ago

I think the data clearly shows that Components X and Z have a higher cost to manufacture internally, so it makes sense to purchase them from the external supplier.

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