CIMA Exam CIMAPRO19-P02-1 Topic 6 Question 88 Discussion

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

Question #: 88
Topic #: 6

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 Alisha at May 18, 2024, 11:17 PM

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Jeff

26 days ago

Ah, the joys of accounting. A and B are spot on, but C and D seem a bit questionable. And E? That's just asking for a factory meltdown. Maybe the manager should try juggling chainsaws instead - probably safer!

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Leslee

27 days ago

Haha, this manager must be really desperate to cut costs if they're looking into this throughput stuff. A and B are solid, but C and D sound a bit off. And E? Come on, that's just asking for trouble. Gotta keep the balance, you know?

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Makeda

15 days ago

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

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James

19 days ago

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

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Johanna

20 days ago

B) Not all sales equal to profit

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Maryann

22 days ago

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

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Tegan

1 months ago

Hmm, this is tricky. I think A and B are definitely true, but I'm not sure about C and D. Stocking up on inventory can be helpful, and fixed costs aren't the whole story. E is just plain silly - you can't ignore bottlenecks, that's the whole point of throughput accounting!

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Andra

1 months ago

Ah, I see - throughput accounting is all about maximizing efficiency, not just mindlessly producing. A and B sound spot on, but C and E seem a bit extreme. Gotta balance inventory and capacity, you know?

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