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CIMAPRA19-F01-1 Exam - Topic 5 Question 107 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 107
Topic #: 5

[All CIMAPRA19-F01-1 Questions]

An entity has an inventory holding period of 52 days.

This means that the inventory:

Atakes 52 days to arrive after it has been ordered.

Bstays in the entity's warehouse for an average of 52 days before it is sold.

Ctakes 52 days to manufacture.

Dtakes 52 days to be paid for.

Show Suggested Answer

Suggested Answer: B

by Sylvia at Feb 06, 2025, 11:48 PM

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Dannie

8 months ago

52 days? Seems a bit long for inventory to sit around!

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Vivan

8 months ago

Just to clarify, it's about the average time in the warehouse.

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Murray

8 months ago

Wait, are you sure it doesn't mean the time to manufacture?

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Lourdes

8 months ago

Totally agree, that's what inventory holding period means!

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Trevor

9 months ago

It means the stock sits for 52 days before being sold.

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Jina

9 months ago

I’m torn between B and C, but I think B makes more sense since it’s about the average time in stock.

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Chi

9 months ago

I feel like option A could be misleading; it sounds like it’s about delivery time, which isn’t the same as holding period.

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Ty

9 months ago

I remember practicing a question like this, and I think the holding period is definitely about the time before it's sold, but I'm not completely sure.

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Nidia

9 months ago

I think the inventory holding period refers to how long the inventory stays in the warehouse, so I might go with option B.

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Pearly

9 months ago

The key here is that the question is specifically asking about the inventory holding period, which refers to the time the inventory stays in the entity's warehouse before being sold. So the correct answer is B.

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Augustine

9 months ago

I'm a bit confused by this question. Is the inventory holding period the same as the time it takes to manufacture the inventory? Or is it the time it takes to get paid for the inventory after it's sold? I want to make sure I have the right interpretation.

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Daron

9 months ago

Okay, let me break this down. The question is asking about the inventory holding period, which means the time the inventory stays in the entity's possession before it is sold. So the correct answer must be B.

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Winifred

9 months ago

Hmm, I'm not sure about this one. I'll need to think it through carefully to make sure I understand what the question is asking.

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Novella

10 months ago

This seems straightforward, I think the answer is B - the inventory stays in the entity's warehouse for an average of 52 days before it is sold.

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Gayla

1 year ago

D) would be a hilarious answer, but unfortunately it's not what the question is asking. Gotta go with B) on this one.

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Fallon

1 year ago

B) stays in the entity's warehouse for an average of 52 days before it is sold.

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Cherelle

1 year ago

A) takes 52 days to arrive after it has been ordered.

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Joaquin

1 year ago

Haha, I bet the person who wrote this question has been in a few too many warehouse management meetings. B) is the way to go.

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Jamey

1 year ago

Yeah, definitely B) is the correct answer.

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Frank

1 year ago

I agree, B) stays in the entity's warehouse for an average of 52 days before it is sold.

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Brandon

1 year ago

I agree, B) is the correct choice. The question specifies the inventory 'holding period', so it's clearly referring to the time the inventory sits in the warehouse before being sold.

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Marion

1 year ago

Exactly. It's important for companies to manage their inventory holding period efficiently to optimize their operations.

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Bernardo

1 year ago

Definitely. The holding period is all about how long the inventory sits in the warehouse before being sold.

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Adell

1 year ago

Yeah, I agree. It wouldn't make sense for it to be about manufacturing or payment.

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Leslee

1 year ago

I think B) is the right answer too. It makes sense based on the definition of inventory holding period.

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Dorathy

1 year ago

I'm not sure, but I think it makes sense that the answer is B. It wouldn't make sense for it to take 52 days to arrive after being ordered.

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Tess

1 year ago

I agree with Tarra. The inventory holding period refers to how long the inventory sits in the warehouse before being sold.

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Tesha

1 year ago

B) seems like the right answer to me. 52 days is a pretty standard inventory holding period for a lot of businesses.

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Timothy

1 year ago

B) seems like the right answer to me. 52 days is a pretty standard inventory holding period for a lot of businesses.

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Miesha

1 year ago

C) takes 52 days to manufacture.

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Monte

1 year ago

B) stays in the entity's warehouse for an average of 52 days before it is sold.

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Monroe

1 year ago

A) takes 52 days to arrive after it has been ordered.

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Tarra

1 year ago

I think the answer is B) stays in the entity's warehouse for an average of 52 days before it is sold.

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