CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 41 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 41
Topic #: 1

Refer to the exhibit.

A company manufactures three components on the same machine, on which there is spare capacity. An external supplier has offered to supply all of the company's requirements of the components. Data for the components are as follows:

Which components should be purchased from the external supplier?

AComponent X only

BComponents X and Z

CComponents Y and Z

DComponents X, Y and Z

Show Suggested Answer

Suggested Answer: D

by My at Sep 16, 2022, 05:27 AM

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Loreen

8 days ago

I think the answer is B) Components X and Z. The data shows that the external supplier can provide the components at a lower cost than the company's manufacturing cost. It makes sense to outsource those components to take advantage of the cost savings.

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