CIMA Exam CIMAPRO19-P02-1 Topic 7 Question 93 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 93
Topic #: 7

The manager of Ice Sculpting Co. believes that too much material is being wasted during downtime. She researched, and found throughput accounting to be an adequate alternative. However, she wasn't sure if all that

she read was accurate.

Which of the following statements are TRUE when using Throughput Accounting? Select ALL that apply.

AIf there is no demand, then there should be no production.

BNot all sales equal to profit

CStocking up on inventory is bad for business.

DAll costs, except materials, are considered fixed.

EDepartments should be operating at full capacity regardless of bottlenecks

Show Suggested Answer

Suggested Answer: A, C, D

by Kaycee at Jul 18, 2024, 05:29 AM

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Rolande

10 months ago

I'm just hoping the exam question doesn't ask us to juggle ice sculptures. That would be a real 'meltdown' of a question.

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Yoko

10 months ago

This is a classic case of 'work smarter, not harder'. Throughput accounting is the way to go, instead of just blindly producing.

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Hana

9 months ago

That's true! Throughput accounting really helps in optimizing production and reducing waste.

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Evan

9 months ago

E) Departments should be operating at full capacity regardless of bottlenecks

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Genevive

10 months ago

C) Stocking up on inventory is bad for business.

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Mertie

10 months ago

B) Not all sales equal to profit

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Vi

11 months ago

E is false. Throughput accounting is all about identifying and managing the bottleneck, not maximizing capacity everywhere.

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Catarina

10 months ago

E is false. Throughput accounting is all about identifying and managing the bottleneck, not maximizing capacity everywhere.

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Benton

10 months ago

C) Stocking up on inventory is bad for business.

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Muriel

10 months ago

B) Not all sales equal to profit

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Vallie

11 months ago

I think option C is true too. Stocking up on inventory ties up cash that could be used elsewhere.

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Cortney

11 months ago

That's a good point, Devora. Option B does make sense in the context of throughput accounting.

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Devora

11 months ago

I believe option B is also true because not all sales contribute to profit.

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Armanda

11 months ago

D is also true. Throughput accounting considers only variable costs, treating everything else as fixed.

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Fausto

11 months ago

A, B, and C are definitely true. Throughput accounting focuses on maximizing throughput, not minimizing costs. No point in producing if there's no demand.

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Lemuel

10 months ago

C) Stocking up on inventory is bad for business.

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Serina

10 months ago

B) Not all sales equal to profit

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Owen

10 months ago

A) If there is no demand, then there should be no production.

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Daniel

10 months ago

Not all sales equal to profit

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Theola

11 months ago

If there is no demand, then there should be no production.

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Herminia

11 months ago

A, B, and C are definitely true. Throughput accounting focuses on maximizing throughput, not minimizing costs. No point in producing if there's no demand.

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Vallie

11 months ago

I agree with Cortney, option A seems like a logical choice.

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Cortney

11 months ago

I think option A is true because it makes sense to not produce if there is no demand.

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