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CIMAPRO19-P01-1 Exam - Topic 9 Question 131 Discussion

A company produces three products D, E and F. The statement below shows the selling price and product costs per unit for each product, based on a traditional absorption costing system.Each of the products is produced using Process A which has a maximum capacity of 2,500 hours per period.If a throughput accounting approach is used, the ranking of products, in order of priority, for the profit maximizing product mix will be:
C) F, D, E
A) D, E, F
B) E, D, F
D) D, F, E

CIMAPRO19-P01-1 Exam - Topic 9 Question 131 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam
Question #: 131
Topic #: 9
[All CIMAPRO19-P01-1 Questions]

A company produces three products D, E and F. The statement below shows the selling price and product costs per unit for each product, based on a traditional absorption costing system.

Each of the products is produced using Process A which has a maximum capacity of 2,500 hours per period.

If a throughput accounting approach is used, the ranking of products, in order of priority, for the profit maximizing product mix will be:

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Suggested Answer: C

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Jacinta
4 days ago
I feel like product D had the highest contribution margin in our last exercise, but I can't recall the exact numbers for E and F.
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Santos
9 days ago
I'm not entirely sure, but I think we did a practice question where we had to rank products based on their contribution margins. I wonder if that's similar here?
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Dick
14 days ago
I remember we discussed throughput accounting and how it focuses on contribution per hour. I think that might help with this question.
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