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CIMA Exam CIMAPRO19-P03-1 Topic 5 Question 87 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam
Question #: 87
Topic #: 5
[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 Sabra at Feb 12, 2025, 08:23 PM

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Mickie
14 days ago
Hmm, I wonder if the motor manufacturer is secretly a bunch of garden gnomes plotting world domination through price hikes. Just a thought...
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Ernie
6 days 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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Shawna
24 days ago
A is just asking for trouble. Telling the supplier they can't raise prices? That's not how business works, my friend.
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Lelia
17 days ago
D) The impact of absorbing the increased cost of motors on UJK's profits should be calculated.
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Remedios
17 days 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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Gladis
30 days ago
I believe option D is also important. We need to calculate the impact on our profits if we have to absorb the increased cost of motors.
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Stephania
1 months ago
I agree with Nieves. It's important to be prepared for any potential increase in costs from the motor manufacturer.
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Lynsey
1 months ago
I'd go with B, C, and D. Covering all the bases - noting the risk, estimating impact on demand, and calculating the profit implications.
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Nieves
1 months ago
I think option B is correct. We should definitely consider the possibility of increased selling prices in the stress test report.
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Leana
1 months ago
E is a great idea! UJK should explore alternative suppliers as part of their stress testing. Diversifying their supply chain is key.
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Lore
9 days 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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Genevieve
1 months ago
B and D seem to be the obvious choices here. UJK needs to document the risk of price increases and calculate the impact on their profits.
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Vivan
21 days ago
D) The impact of absorbing the increased cost of motors on UJK's profits should be calculated.
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Cordelia
1 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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