Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIMA Exam CIMAPRO19-P03-1 Topic 1 Question 69 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam
Question #: 69
Topic #: 1
[All CIMAPRO19-P03-1 Questions]

UJK manufactures garden machinery. The company is dependent upon another manufacturer for the motors that power its products.

One of the factors that is being considered in a stress test requested by UJK's Board is the possibility that the motor manufacturer increases its selling prices by 10% The motor accounts for a significant proportion of the overall manufacturing cost of UJK's products

Which of the following are correct?

Show Suggested Answer Hide Answer
Suggested Answer: C, D

by Jacquelyne at Jun 01, 2024, 12:54 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P03-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Jordan
2 months ago
This is a tough one, but I think B, D, and E cover the bases. Gotta be prepared for anything, even if it means getting in bed with a new motor supplier.
upvoted 0 times
Martin
2 months ago
Absolutely, having a backup plan with an alternative motor supplier is a smart move.
upvoted 0 times
...
Casie
2 months ago
I agree, being prepared for any scenario is crucial for UJK's success.
upvoted 0 times
...
...
Laurel
2 months ago
I believe option D is also necessary. We need to calculate the impact on UJK's profits if they absorb the increased cost of motors.
upvoted 0 times
...
Twana
2 months ago
I agree with you, Marylin. It's crucial to consider the impact of increased selling prices on UJK's products.
upvoted 0 times
...
Viola
2 months ago
Haha, the motor supplier must be having a field day. I'd go with B, D, and E - diversify those supply chains, my friends!
upvoted 0 times
...
Sherman
3 months ago
Ah, a classic cost management dilemma. I'd say B, D, and E are all crucial. Gotta have a backup plan in case the motor supplier gets greedy!
upvoted 0 times
Sheridan
2 months ago
E) UJK should identify an alternative vendor of suitable motors as part of its stress test
upvoted 0 times
...
Karma
2 months ago
D) The impact of absorbing the increased cost of motors on UJK's profits should be calculated.
upvoted 0 times
...
Eun
2 months ago
B) The possibility of an increase in selling prices due to increased costs should be noted in the stress test report
upvoted 0 times
...
...
Carri
3 months ago
I agree with B and D. But C is also important - they need to understand how demand would be affected if they pass on the costs.
upvoted 0 times
...
Marylin
3 months ago
I think option B is important to include in the stress test report.
upvoted 0 times
...
Dana
3 months ago
Definitely B and D. The stress test needs to consider the potential impact on pricing and profitability if the motor costs increase.
upvoted 0 times
Lea
2 months ago
D) The impact of absorbing the increased cost of motors on UJK's profits should be calculated.
upvoted 0 times
...
Yuriko
2 months ago
B) The possibility of an increase in selling prices due to increased costs should be noted in the stress test report
upvoted 0 times
...
Yvette
2 months ago
D) The impact of absorbing the increased cost of motors on UJK's profits should be calculated.
upvoted 0 times
...
Elina
2 months ago
D) The impact of absorbing the increased cost of motors on UJK's profits should be calculated.
upvoted 0 times
...
Lashandra
2 months ago
B) The possibility of an increase in selling prices due to increased costs should be noted in the stress test report
upvoted 0 times
...
Claribel
3 months ago
B) The possibility of an increase in selling prices due to increased costs should be noted in the stress test report
upvoted 0 times
...
...

Save Cancel