CIMAPRA19-E01-1 Exam - Topic 1 Question 6 Discussion

Actual exam question for CIMA's CIMAPRA19-E01-1 exam

Question #: 6
Topic #: 1

A new manufacturing firm has been growing very rapidly. Both its output and hired staff have increased dramatically, and it's looking like the business will have to physically expand sometime in the near future.

The company's managing director decides to outsource the payroll of the business to an external provider.

What are his likely reasons for making this decision?

AHe is finding it difficult to keep on top of all of the support activities he has to provide.

BHe is finding managing the payroll complicated and time consuming.

CPayroll requires an expertise on tax and legislation that he does not have in house.

DIt will allow him to focus on other priorities.

EThere is more confidentiality when using external providers.

FBetter management information will be supplied.

GIt will improve the accuracy in the payroll.

Show Suggested Answer

Suggested Answer: A, B, C, D

by Minna at May 03, 2022, 10:10 AM

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Nancey

4 months ago

Surprised he didn't have a system in place already!

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Han

4 months ago

Definitely need expertise for tax stuff, good call!

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Barrett

4 months ago

But isn’t payroll pretty straightforward?

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Donte

4 months ago

Totally agree, outsourcing can really help with focus.

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Phuong

5 months ago

Sounds like he's overwhelmed with all the tasks!

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Marylyn

5 months ago

This is a tricky one. There are a lot of factors to consider, like the company's objectives, the customer segment's characteristics, and the available marketing channels. I'll need to carefully evaluate each option to determine the two most strategic use cases.

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