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CIMA Exam CIMAPRA19-F03-1 Topic 7 Question 90 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 90
Topic #: 7
[All CIMAPRA19-F03-1 Questions]

A company based inCountry D, whose currency is the D$, has an objective of maintaining an operating profit margin of at least 10% each year.

Relevant data:

* The companymakes sales to Country E whose currency is the E$. It also makes sales to Country F whose currency is the F$.

* All purchases are from Country G whose currency is the G$.

* The settlement of all transactions is in the currency of the customer or supplier.

Whichof the following changes wouldbe most likely to help the company achieve its objective?

Show Suggested Answer Hide Answer
Suggested Answer: A, B, E

by Misty at Jul 05, 2024, 06:04 AM

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Dona
1 months ago
I bet the finance team is having a field day with all these currency fluctuations. Gotta love those exchange rate calculations!
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Carey
3 days ago
A: Definitely, it would make their purchases cheaper.
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Jesusa
10 days ago
B: I agree, a stronger D$ against the G$ would increase their profit margin.
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Kendra
14 days ago
A: I think option C would help the company achieve its objective.
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Sherly
1 months ago
Hold up, guys. What if they just start buying in D$ instead of G$? That would solve everything! Why didn't they think of that?
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Annette
1 months ago
Hmm, I'm not sure. Wouldn't a weaker D$ against the G$ also help, since their purchases would be cheaper in D$? Tough call.
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Felix
2 months ago
I'm with you, Remona. A stronger D$ against the E$ is the perfect solution to meet that 10% target.
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Jennie
9 days ago
I see your point, but I still think a stronger D$ against the E$ is the best option for us.
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Nan
10 days ago
But what about the F$ weakening against the D$? Wouldn't that also be beneficial for us?
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Erasmo
14 days ago
I agree, that would be the most beneficial change for the company to achieve its objective.
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Truman
20 days ago
Yes, a stronger D$ against the E$ would definitely help increase our operating profit margin.
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Annabelle
29 days ago
I agree with you, a stronger D$ against the E$ would definitely help us reach our target.
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Remona
2 months ago
A is the way to go! If the D$ strengthens against the E$, their sales to Country E will be more valuable in D$, boosting the profit margin.
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Willodean
13 hours ago
Hopefully it works out for them in the long run.
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Billy
8 days ago
I agree, it's a smart move to focus on strengthening the D$ against the E$.
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Detra
29 days ago
That makes sense, it would definitely help increase their profit margin.
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Aleshia
30 days ago
A) The D$ strengthens against the E$ over time.
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Shakira
2 months ago
Why do you think that? Can you explain your rationale?
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Eveline
2 months ago
I disagree, I believe option C would be more beneficial for the company.
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Shakira
2 months ago
I think option A would help the company achieve its objective.
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