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CIMAPRA19-F02-1 Exam - Topic 1 Question 31 Discussion

Taking each statement individually, which of the following explains the movement in the gross profit margin from 20X4 to 20X5 as calculated by the analysts?
B) Reduction in the cost of raw materials NOT passed onto customers.
A) Increase in the levels of closing inventory of raw materials.
C) Prompt payment discountsno longer offered to customers.
D) Increase in the volume of sales over the year.

CIMAPRA19-F02-1 Exam - Topic 1 Question 31 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 31
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

Taking each statement individually, which of the following explains the movement in the gross profit margin from 20X4 to 20X5 as calculated by the analysts?

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Suggested Answer: B

by Gary at May 05, 2022, 06:47 PM

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Danica
10 months ago
Not convinced about A. Closing inventory doesn't always mean higher profits.
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Chantell
10 months ago
D is a big yes! More sales usually boost margins.
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Lashawna
11 months ago
Wait, are we sure about C? That seems off.
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Chantay
11 months ago
A is definitely a factor too!
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Dorian
11 months ago
I think B makes the most sense here.
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Maurine
11 months ago
Okay, let's see. The options range from 4 hours to 3 days, so I'm guessing the average is probably somewhere in the middle. I'll go with option D, 17 hours, as my best guess.
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Tyra
11 months ago
Hmm, I'm a bit unsure about this one. The options seem similar, so I'll need to really focus on understanding the differences between them.
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Timmy
11 months ago
Hmm, this looks like a tricky one. I'll need to carefully examine each statement and think through the ROUND and TRUNC functions to determine which ones are true.
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Glenn
11 months ago
D sounds terrible. Who memorizes an entire detailed list? You want notes to reference during the interview.
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