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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?

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Suggested Answer: C, D

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

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Jordan
6 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.
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Martin
5 months ago
Absolutely, having a backup plan with an alternative motor supplier is a smart move.
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Casie
5 months ago
I agree, being prepared for any scenario is crucial for UJK's success.
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Laurel
6 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.
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Twana
6 months ago
I agree with you, Marylin. It's crucial to consider the impact of increased selling prices on UJK's products.
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Viola
6 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!
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Sherman
6 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!
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Sheridan
5 months ago
E) UJK should identify an alternative vendor of suitable motors as part of its stress test
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Karma
5 months ago
D) The impact of absorbing the increased cost of motors on UJK's profits should be calculated.
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Eun
6 months ago
B) The possibility of an increase in selling prices due to increased costs should be noted in the stress test report
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Carri
6 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.
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Marylin
6 months ago
I think option B is important to include in the stress test report.
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Dana
7 months ago
Definitely B and D. The stress test needs to consider the potential impact on pricing and profitability if the motor costs increase.
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Lea
6 months ago
D) The impact of absorbing the increased cost of motors on UJK's profits should be calculated.
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Yuriko
6 months ago
B) The possibility of an increase in selling prices due to increased costs should be noted in the stress test report
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Yvette
6 months ago
D) The impact of absorbing the increased cost of motors on UJK's profits should be calculated.
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Elina
6 months ago
D) The impact of absorbing the increased cost of motors on UJK's profits should be calculated.
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Lashandra
6 months ago
B) The possibility of an increase in selling prices due to increased costs should be noted in the stress test report
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Claribel
6 months ago
B) The possibility of an increase in selling prices due to increased costs should be noted in the stress test report
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