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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Jacki

1 months ago

I'm going to have to go with B) Components X and Z. The numbers don't lie, and it's clear the external supplier has a significant cost advantage for those two components. Plus, it frees up the company's resources to focus on their core competencies. Now, where's the vending machine? I need a snack to fuel my brain power.

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Jules

1 months ago

Hmm, this is a tough one. I'm leaning towards C) Components Y and Z, since the data shows the company has a much higher manufacturing cost for those components compared to the external supplier. But I'm curious to hear what the other candidates think. Anyone want to arm-wrestle for the right answer?

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Joaquin

1 months ago

D) Components X, Y and Z seems like the best option to me. Why bother manufacturing anything in-house when the external supplier can provide everything at a lower cost? Might as well go for the full outsourcing solution and focus on other parts of the business.

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Blondell

12 days ago

I think it's a smart move to focus on other areas of the business and let the supplier handle the manufacturing.

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Whitley

15 days ago

I agree, it makes sense to outsource all three components to the external supplier.

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3 months ago

I think we should purchase Component X only.

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