CIMA Exam CIMAPRO19-P02-1 Topic 3 Question 86 Discussion

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

Question #: 86
Topic #: 3

The manager of Ice Sculpting Co. believes that too much material is being wasted during downtime. She researched, and found throughput accounting to be an adequate alternative. However, she wasn't sure if all that

she read was accurate.

Which of the following statements are TRUE when using Throughput Accounting? Select ALL that apply.

AIf there is no demand, then there should be no production.

BNot all sales equal to profit

CStocking up on inventory is bad for business.

DAll costs, except materials, are considered fixed.

EDepartments should be operating at full capacity regardless of bottlenecks

Show Suggested Answer

Suggested Answer: A, C, D

by Tanja at Apr 26, 2024, 09:23 AM

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7 months ago

Got a tricky question in the exam.

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