CIMA Exam CIMAPRA19-P03-1 Topic 4 Question 68 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam

Question #: 68
Topic #: 4

H Ltdis a company providing postal and courier services to small businesses. Customers pay a monthly or annual subscription fee to use the service, plusaverysmall fee for each item delivered.

A year ago, H employed a newsalesteam. Their remuneration is dependent on the number of new customers they sign up. Sales increased dramatically in the first six months, but nowdifficulties are emerging such as new customers dropping their subscription once the initial period has expired; subscriber direct debits being returned unpaid; subscribers going out of business and other similar issues.

Which of the following would be appropriate to help resolve these problems?

AAlter the pricing structure in order to increase the price for sending each item but decrease the subscription element of the fee.

BEnsure that a credit check is carried outbefore a subscriber is accepted.

CReduce the rate of commission payable to any sales person who fails to sign up at least an agreedminimum number of customers each month.

DAlter the commission arrangements so that commission is payable only when the subscriber signs up for a second year.

EPreparing a monthly report for sales persons detailing the performance of each new customer they have signed up over the previous year.

Show Suggested Answer

Suggested Answer: B, D, E

by Janae at Apr 04, 2025, 09:45 PM

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Alpha

1 days ago

I think option B is a good idea. We need to make sure we are accepting reliable subscribers.

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