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

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 thatshe read was accurate.Which of the following statements are TRUE when using Throughput Accounting? Select ALL that apply.
A) If there is no demand, then there should be no production. and C) Stocking up on inventory is bad for business. and D) All costs, except materials, are considered fixed.
B) Not all sales equal to profit
E) Departments should be operating at full capacity regardless of bottlenecks

CIMAPRO19-P02-1 Exam - 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.

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

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

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Derick
9 months ago
E? Really? Operating at full capacity with bottlenecks sounds risky!
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Herman
10 months ago
D is correct, fixed costs are a key part of throughput accounting.
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Albert
10 months ago
C seems off, sometimes inventory can be good for business.
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Dean
10 months ago
B is spot on, not all sales translate to profit.
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Leonard
10 months ago
A is definitely true, no demand means no point in producing.
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Albina
10 months ago
I have a vague recollection that D is a common point in throughput accounting, but I'm not confident about E; it seems counterintuitive to ignore bottlenecks.
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Holley
11 months ago
I practiced a question similar to this and I think C is also true; having too much inventory can tie up resources and cash flow.
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Carlee
11 months ago
I'm not entirely sure, but I feel like B is correct because not all sales translate directly to profit, especially with variable costs involved.
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Yuki
11 months ago
I remember something about demand driving production in throughput accounting, so I think A might be true.
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Novella
11 months ago
Ah, this is a great opportunity to apply what I've learned about throughput accounting. I've got a solid strategy for tackling this question.
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Altha
11 months ago
I'm a bit unsure about the fixed costs part. I'll need to review that concept before selecting my answers.
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Brande
11 months ago
Okay, I've got a good handle on throughput accounting from my studies. I'm confident I can identify the true statements here.
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Dorothy
11 months ago
This question seems straightforward, but I want to make sure I understand the key principles of throughput accounting before selecting the answers.
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Ronny
11 months ago
Hmm, the wording on some of these options is a bit tricky. I'll need to think carefully about the implications of each statement.
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Jeanice
11 months ago
This seems like a straightforward project management question. I'll focus on the key terms like "track project progress" and "against what was planned" to identify the best answer.
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Shawnda
11 months ago
I'm confident I know the answer to this one. The terms of reference would be outlined in the Programme Brief.
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Ilona
11 months ago
I practiced a similar question recently, and I feel like convertible bonds might not fit the definition of marketable securities.
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Rolande
2 years 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
2 years 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
2 years ago
That's true! Throughput accounting really helps in optimizing production and reducing waste.
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Evan
2 years ago
E) Departments should be operating at full capacity regardless of bottlenecks
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Genevive
2 years ago
C) Stocking up on inventory is bad for business.
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Mertie
2 years ago
B) Not all sales equal to profit
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Vi
2 years ago
E is false. Throughput accounting is all about identifying and managing the bottleneck, not maximizing capacity everywhere.
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Catarina
2 years ago
E is false. Throughput accounting is all about identifying and managing the bottleneck, not maximizing capacity everywhere.
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Benton
2 years ago
C) Stocking up on inventory is bad for business.
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Muriel
2 years ago
B) Not all sales equal to profit
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Vallie
2 years 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
2 years ago
That's a good point, Devora. Option B does make sense in the context of throughput accounting.
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Devora
2 years ago
I believe option B is also true because not all sales contribute to profit.
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Armanda
2 years ago
D is also true. Throughput accounting considers only variable costs, treating everything else as fixed.
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Fausto
2 years 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
2 years ago
C) Stocking up on inventory is bad for business.
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Serina
2 years ago
B) Not all sales equal to profit
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Owen
2 years ago
A) If there is no demand, then there should be no production.
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Daniel
2 years ago
Not all sales equal to profit
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Theola
2 years ago
If there is no demand, then there should be no production.
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Herminia
2 years 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
2 years ago
I agree with Cortney, option A seems like a logical choice.
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Cortney
2 years ago
I think option A is true because it makes sense to not produce if there is no demand.
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