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

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 93
Topic #: 7
[All CIMAPRO19-P02-1 Questions]

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.

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Suggested Answer: A, C, D

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

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Rolande
9 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
8 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
9 months ago
C) Stocking up on inventory is bad for business.
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Mertie
9 months ago
B) Not all sales equal to profit
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Vi
10 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
10 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
10 months ago
That's a good point, Devora. Option B does make sense in the context of throughput accounting.
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Devora
10 months ago
I believe option B is also true because not all sales contribute to profit.
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Armanda
10 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
9 months ago
C) Stocking up on inventory is bad for business.
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Serina
9 months ago
B) Not all sales equal to profit
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Owen
9 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
10 months ago
If there is no demand, then there should be no production.
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Herminia
10 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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