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CIMAPRO19-P02-1 Exam - Topic 3 Question 86 Discussion

A supermarket group has experienced operational problems during recent years, including a shortage of warehousing space due to increasing turnover and poor inventory management. The product portfolio has expanded considerably. Although this has led to increased sales volume, marketing and logistics costs have increased disproportionately. Non product-specific costs have also increased significantly.Management is now considering using Direct Product Profitability (DPP).Which of the following statements are valid in respect of the possible implementation of DPP within the supermarket group?Select ALL that apply.
A) DPP should result in improved management of storage space. and C) DPP should result in improved pricing decisions. and D) DPP requires non product-specific costs to be apportioned rather than allocated.
B) DPP should result in improved supplier relationships.
E) DPP provides summary information on the profitability of each customer group.

CIMAPRO19-P02-1 Exam - Topic 3 Question 86 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 86
Topic #: 3
[All CIMAPRO19-P02-1 Questions]

A supermarket group has experienced operational problems during recent years, including a shortage of warehousing space due to increasing turnover and poor inventory management. The product portfolio has expanded considerably. Although this has led to increased sales volume, marketing and logistics costs have increased disproportionately. Non product-specific costs have also increased significantly.

Management is now considering using Direct Product Profitability (DPP).

Which of the following statements are valid in respect of the possible implementation of DPP within the supermarket group?

Select ALL that apply.

Show Suggested Answer Hide Answer
Suggested Answer: A, C, D

by Tanja at Apr 26, 2024, 09:23 AM

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Juliann
9 months ago
DPP gives good insights on customer profitability, that's a win!
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Brett
10 months ago
Wait, does DPP really need non product-specific costs apportioned?
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Katina
10 months ago
Improved pricing decisions? Definitely a plus!
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Ryan
10 months ago
Not convinced it will improve supplier relationships.
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Stephaine
10 months ago
DPP can help manage storage better for sure.
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Javier
10 months ago
I think option D is tricky; I thought DPP required costs to be allocated, not apportioned, but I might be mixing it up.
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Reita
11 months ago
I practiced a similar question where DPP was linked to pricing decisions, so I feel confident about option C being correct.
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Clarinda
11 months ago
I'm not entirely sure about option B; I don't recall DPP directly improving supplier relationships.
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Floyd
11 months ago
I remember that DPP can help with managing storage space better, so I think option A might be valid.
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Janella
11 months ago
This question is testing our understanding of DPP and how it could benefit the supermarket group. I'll need to draw on my knowledge of cost accounting principles to determine which statements are accurate. Careful analysis of the information provided will be crucial.
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Loise
11 months ago
Okay, I think I've got a handle on this. The key is to focus on how DPP could help the supermarket group improve its management of storage space, supplier relationships, pricing decisions, and cost allocation. I'll make sure to select all the valid statements.
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Marleen
11 months ago
Hmm, I'm a bit unsure about this one. The question mentions some operational problems the supermarket group is facing, but I'm not sure how DPP would specifically address those issues. I'll need to think through each statement carefully to see which ones make sense.
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Sylvie
11 months ago
This seems like a straightforward question about the potential benefits of implementing Direct Product Profitability (DPP) in the supermarket group. I'll need to carefully consider each statement and determine which ones are valid based on the information provided.
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Natalie
11 months ago
I'm a little unsure about this one. I know there are JSON-related methods in JavaScript, but I can't recall the exact names. I'll have to review my notes to make sure I get this right.
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Johnson
11 months ago
I'm leaning towards green too, but it's kind of tricky. I wish we had more examples to review before the exam!
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Maddie
11 months ago
I'm pretty confident this is asking about the meaning of the term "1PCC". Based on the options, it seems to be related to call handling actions and the integration of SIP endpoints and T-lib clients.
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Louisa
11 months ago
I feel like we did a practice question on cable standards, and I remember thinking CAT-7E might not be essential if we stick with CAT 6A.
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Ressie
1 year ago
DPP sounds like a tasty way to improve their supermarket's performance. I'll have a double scoop of Option C and a side of Option A, please!
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Velda
1 year ago
C: DPP sounds like a great tool for the supermarket group.
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Son
1 year ago
B: DPP should result in improved pricing decisions.
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Shaun
1 year ago
A: DPP should result in improved management of storage space.
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Armanda
1 year ago
Haha, Option D is a classic accounting question. 'Apportioned' or 'allocated' - the age-old debate in cost accounting!
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Sina
1 year ago
I'm not so sure about Option E. Wouldn't DPP focus more on product profitability rather than customer groups? That's a bit of a stretch in my opinion.
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Kimbery
1 year ago
Nilsa: Yeah, I think DPP is more about product profitability rather than customer groups.
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Gertude
1 year ago
User 3: I'm not sure about Option E. DPP focusing on customer groups seems unlikely.
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Dino
1 year ago
I agree with you. DPP is more focused on product profitability rather than customer groups.
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Nilsa
1 year ago
User 2: I agree. Option A makes sense for improving operational efficiency.
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Lavonna
1 year ago
User 1: I think Option A is valid. DPP should help with managing storage space.
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Rolf
1 year ago
I think Option E makes sense. DPP can provide information on profitability of different customer groups.
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Idella
1 year ago
Improved supplier relationships (Option B) is also a potential benefit of DPP. It could help them negotiate better deals and optimize their supply chain.
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Elinore
1 year ago
DPP provides summary information on the profitability of each customer group.
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Rebbeca
1 year ago
DPP should result in improved pricing decisions.
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Daryl
1 year ago
DPP should result in improved supplier relationships.
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Luisa
1 year ago
DPP should result in improved management of storage space.
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Kerrie
1 year ago
I believe C) DPP should result in improved pricing decisions is also valid. It can help optimize pricing strategies based on profitability.
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Alex
1 year ago
DPP seems like a great solution to their warehousing and inventory woes. Choice A is definitely valid, as it should help them manage their storage space more efficiently.
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Celia
1 year ago
I agree with Jin. Better storage management can help with the warehousing space shortage issue.
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Jin
1 year ago
I think A) DPP should result in improved management of storage space.
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