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CIMAPRO19-P01-1 Exam - Topic 7 Question 79 Discussion

A company is preparing its annual budget and is estimating the number of units of Product W that it will sell in each quarter of year 2. Past experience has shown that the trend for sales of the product is represented by the following relationship:Calculate the expected unit sales of Product W for each quarter of year 2, after adjusting for seasonal variations using the multiplicative model.
A) The sales forecast for year 2 Quarter 4 = 35,100 units
B) The sales forecast for year 2 Quarter 4 = 25,100 units
C) The sales forecast for year 2 Quarter 4 = 22,600 units
D) The sales forecast for year 2 Quarter 4 = 38,100 units

CIMAPRO19-P01-1 Exam - Topic 7 Question 79 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam
Question #: 79
Topic #: 7
[All CIMAPRO19-P01-1 Questions]

A company is preparing its annual budget and is estimating the number of units of Product W that it will sell in each quarter of year 2. Past experience has shown that the trend for sales of the product is represented by the following relationship:

Calculate the expected unit sales of Product W for each quarter of year 2, after adjusting for seasonal variations using the multiplicative model.

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Suggested Answer: A

References:


by Herminia at Dec 24, 2023, 02:55 PM

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Denise
8 months ago
Wait, how did they come up with these numbers? Sounds fishy!
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Rosalia
8 months ago
D, 38,100 units? That's a bit optimistic, don't you think?
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Janna
8 months ago
C at 22,600 units? That feels too low for Q4.
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Della
8 months ago
I disagree, B seems more accurate to me, 25,100 units fits the trend.
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Clay
9 months ago
I think it's definitely A, 35,100 units sounds right.
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Donte
9 months ago
I vaguely remember that Quarter 4 usually has higher sales, so maybe the 38,100 units could be right, but I need to verify the seasonal adjustments first.
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Tenesha
9 months ago
I feel like the answer might be closer to 35,100 units, but I need to double-check my calculations to be sure.
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Margart
9 months ago
I think the multiplicative model means we need to multiply the trend by the seasonal index, but I can't recall the specific seasonal factors for Product W.
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Karan
9 months ago
I remember we practiced a similar question on seasonal adjustments, but I'm not sure about the exact calculations for this one.
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Tawanna
9 months ago
Alright, time to put my forecasting skills to the test. I've worked with these types of problems before, so I'm feeling pretty confident I can nail this one. Just need to stay focused and double-check my work.
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Iluminada
9 months ago
This seems straightforward enough. I just need to plug the trend and seasonal indices into the formula to get the expected sales for each quarter. As long as I don't make any silly mistakes, I should be able to get the right answer.
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Regenia
9 months ago
Hmm, I'm a bit unsure about how to apply the multiplicative model here. I'll need to make sure I understand the relationship between the trend and seasonal factors before I can confidently solve this.
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Ira
9 months ago
Okay, this looks like a question on using a multiplicative model to adjust for seasonal variations in sales. I'll need to carefully review the trend data and seasonal indices to calculate the expected sales for each quarter.
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Mollie
10 months ago
I'm a bit confused on this one. I'll need to think it through step-by-step to make sure I understand how the switch will handle the different QoS values.
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Jestine
10 months ago
No problem, I've got this. The key is finding the right discount rate to use in the present value formula.
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Buddy
10 months ago
Ah, I see now. The key is to identify the two correct goals from the options provided. I think I've got it - the continuity of each member link must be verified, and each member link must run BFD. Time to mark my answers and move on to the next question.
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Howard
10 months ago
Intern and resident signatures seem less controlled to me, but I can't remember if they're more like key signatures or not. This one's tricky!
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