CIMAPRA19-P03-1 Exam - Topic 6 Question 59 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam

Question #: 59
Topic #: 6

You are the management accountant for YY a food manufacturing company with an annual sales revenue of $6 million

You discover that the production manager's records are inconsistent Raw materials purchased do not agree with the total recorded for transfers to production plus wastage There is an average shortfall of 2% of purchases

You have investigated and discovered that there are often errors made during manufacturing that results in food that is safe to eat but. because of visual flaws, cannot be sold

The production manager is supposed to scrap all such damaged products and write all such losses off as waste You have discovered however that he has been giving the damaged food to a charity that assists homeless people No records are made of such gifts in order to conceal the losses due to manufacturing errors

Which of the following actions should you take? Select ALL that apply

AInstigate disciplinary action this is both theft and poor management

BDo nothing; this is a good cause and the amount is insignificant

CInstigate a review of the production process to potentially reduce the amount of wastage.

DInstigate a confidential but documented review with the production manager and tell him to stop

EInstigate a process whereby edible but unsellable items can be given to the charity officially

Show Suggested Answer

Suggested Answer: A, C, E

by Refugia at Sep 14, 2024, 12:08 PM

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Willow

3 months ago

Disciplinary action seems harsh, but he should've reported it.

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Stephaine

3 months ago

Wait, is this really just a "good cause"? Sounds fishy.

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Josephine

3 months ago

Giving to charity is great, but it should be documented!

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Marguerita

4 months ago

Definitely need to review that production process.

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Roxane

4 months ago

That's a 2% loss? That's a lot of waste!

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Aretha

4 months ago

I think option A is too harsh; the production manager might have good intentions. Maybe we should focus on E to formalize the charity donations instead.

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Jame

4 months ago

I feel like doing nothing isn't right, even if it’s for a good cause. We need to maintain proper records, but I’m not sure if D or E is the best approach.

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Pansy

4 months ago

This situation seems similar to a case study we did on inventory management. I think option C makes sense to reduce wastage, but I’m torn about the charity aspect.

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Dalene

5 months ago

I remember discussing the ethical implications of reporting losses in class, but I'm not sure if we should prioritize disciplinary action or a review first.

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Cordelia

5 months ago

This is a tricky situation. While the manager's actions were unethical, the intent seems to be good. I would approach this carefully and start with option D - a confidential review and a directive to stop the current practice. That way, we can address the issue without jumping straight to disciplinary action.

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Rossana

5 months ago

The key here is to address the root cause - the production process issues leading to the waste. I would recommend option C, a review of the production process to reduce wastage. That way, we can fix the problem and potentially find a legitimate way to donate the unsellable items, as suggested in option E.

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Willodean

5 months ago

I'm a bit confused here. On one hand, the manager is giving the food to a good cause, which seems positive. But the lack of records and concealment is concerning. I'm not sure if option B is the right call, but I'm also hesitant about being too harsh. Maybe option D would be a good middle ground?

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Lizbeth

5 months ago

This seems like a straightforward case of fraud and mismanagement. I would definitely go with option A - instigate disciplinary action. The production manager is clearly abusing his position and needs to be held accountable.

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Filiberto

5 months ago

In my opinion, the best approach here is a combination of options. Start with option D to address the issue directly with the manager, but also look into option E to establish a proper donation process. And definitely don't ignore option C - improving the production process is key to reducing the waste in the first place.

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Michal

1 year ago

Hmm, I'm feeling a bit like a detective here. This whole thing sounds a bit fishy, but at least the food's going to a good cause. I'd say C, D, and E are the way to go - streamline the process, get the manager on board, and make it all legit. Just don't forget to keep an eye on that guy, you know?

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Melynda

1 year ago

E) Instigate a process whereby edible but unsellable items can be given to the charity officially

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Gail

1 year ago

D) Instigate a confidential but documented review with the production manager and tell him to stop

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Herman

1 year ago

C) Instigate a review of the production process to potentially reduce the amount of wastage.

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Raymon

1 year ago

But we need to follow the correct procedures. We could instigate a review of the production process to reduce wastage.

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Ronny

1 year ago

Definitely don't do nothing! The manager is totally mishandling this situation. I'd go with A, D, and E - disciplinary action is a must, but you gotta give him a chance to correct it too. Might as well make it official while you're at it, right?

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Lezlie

1 year ago

E) Instigate a process whereby edible but unsellable items can be given to the charity officially

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Josphine

1 year ago

D) Instigate a confidential but documented review with the production manager and tell him to stop

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Aleisha

1 year ago

A) Instigate disciplinary action this is both theft and poor management

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Johna

1 year ago

I disagree. We should do nothing. It's for a good cause and the amount is insignificant.

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Raymon

1 year ago

I think we should instigate disciplinary action. It's theft and poor management.

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Jess

1 year ago

Whoa, this is a tricky one! The production manager's shady dealings need to be addressed, but doing nothing seems like it could lead to bigger problems down the line. I'd say a combination of C, D, and E is the way to go - tighten up the process, have a frank talk with the manager, and set up an official channel for the donations.

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Adaline

1 year ago

E) Instigate a process whereby edible but unsellable items can be given to the charity officially

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Margarett

1 year ago

D) Instigate a confidential but documented review with the production manager and tell him to stop

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Janet

1 year ago

C) Instigate a review of the production process to potentially reduce the amount of wastage.

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