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

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

Question #: 88
Topic #: 6

An organization uses a balanced scorecard approach to performance measurement, both at the corporate level and to assess the performance of each of its responsibility centre managers.

Which THREE of the following statements are valid in respect of the effect of this approach on the behavior of the responsibility centre managers?

AIt encourages them to focus mainly on short-term financial measures.

BIt provides them with a range of performance measures to discourage a tendency to focus on only one measure.

CIt provides them with clear guidance as to how customer satisfaction problems should be solved.

DIt encourages them to make decisions that are in line with corporate objectives.

EIt encourages them to identify, and deal with, problems at an earlier stage.

Show Suggested Answer

Suggested Answer: A, C, D

by Alisha at May 18, 2024, 11:17 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Jeff

9 months 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!

upvoted 0 times

...

Leslee

9 months 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?

upvoted 0 times

Pearlene

8 months ago

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

upvoted 0 times

...

Carli

8 months ago

B) Not all sales equal to profit

upvoted 0 times

...

Makeda

9 months ago

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

upvoted 0 times

...

James

9 months ago

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

upvoted 0 times

...

Johanna

9 months ago

B) Not all sales equal to profit

upvoted 0 times

...

Maryann

9 months ago

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

upvoted 0 times

...

Tegan

10 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!

upvoted 0 times

...

Andra

10 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?

upvoted 0 times