Discuss CIMA CIMAPRO19-P02-1 Exam Topic 7 Question 129

In order to remain competitive an organization wishes to achieve cost savings for one of its existing products.

Which of the following correctly describes methods which the organization can use to achieve these cost savings?

Select ALL that apply.

AFunctional analysis is carried out only on existing products and is concerned only with minimizing the cost of the originally defined functions of a product.

BValue engineering is a fundamental rethinking and radical redesign of an organization's existing processes.

CTarget costing is continuously setting new stretch targets while the product is in production.

DValue analysis is examining a product's costs in order to achieve its purpose at a reduced cost while maintaining its reliability and quality.

EKaizen costing is seeking to make cost savings by continuously making small incremental cost reductions while the product is in production.

Suggested Answer: D, E

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24 comments · newest first

Erick 1 day ago

Kaizen costing is great for ongoing improvements.

Goldie 6 days ago

Yeah, it only focuses on existing functions.

Kenneth 12 days ago

Functional analysis seems too limited.

Annalee 17 days ago

Agree, it helps maintain quality while cutting costs.

Tracey 22 days ago

I think value analysis is key for cost savings.

Zona 27 days ago

Yeah, D and E seem the most effective for savings.

Miesha 1 month ago

I prefer D and E. They balance cost and quality well.

Dan 1 month ago

I feel like B could lead to innovation, but risky.

Azzie 1 month ago

C is tricky. Stretch targets can be stressful during production.

Francine 2 months ago

B sounds interesting, but is it practical for existing products?

Jennie 2 months ago

A doesn't seem right. Functional analysis should be broader.

Allene 2 months ago

E is good, but I wonder about A. It seems too limited.

Christene 2 months ago

I like E as well. Small changes can add up.

Mitsue 2 months ago

Agreed, D makes sense. Cost and reliability are key.

Winifred 2 months ago

I think D is a solid choice. It focuses on quality too.

Kallie 3 months ago

B) sounds too extreme for just cost savings, not sure about that one.

Sol 3 months ago

E) is definitely a smart approach, small changes add up!

Willis 3 months ago

Wait, can target costing really work while the product is already out?

Noah 3 months ago

D) is spot on! It's all about balancing cost and quality.

Johnetta 3 months ago

A) is misleading, functional analysis can apply to new products too.

Odette 3 months ago

I feel like value analysis (D) and kaizen costing (E) are definitely methods for achieving cost savings, especially with maintaining quality and making small changes.

Henriette 4 months ago

Target costing sounds familiar, but I thought it was more about setting targets before production starts, not during, so I’m unsure about C.

Ocie 4 months ago

I remember value engineering being about redesigning processes, but I’m not confident if it’s as radical as option B suggests.

Domonique 4 months ago

I think functional analysis is more about understanding functions rather than just minimizing costs, so I'm not sure about option A.

CIMAPRO19-P02-1 Exam - Topic 7 Question 129 Discussion