CIMA Exam CIMAPRA19-P03-1 Topic 1 Question 42 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam

Question #: 42
Topic #: 1

YGH has recently completed a post completion audit on a five year contract that has only recently come to a conclusion. The main finding was that the project delivered most of the expected benefits, but that it cost significantly more to implement than had been anticipated at the project appraisal stage. YGH would not have proceeded if the true cost had been known at that stage.

The project was the responsibility of the production department, which is presently managed by G.

When the project was proposed, the production department was managed by H. H is now YGH's Director of Operations.

How should the finding from this post completion audit be interpreted?

AYGH should consider introducing more detailed checking of the assumptions underlying the costs of future projects.

BThe production department should not be granted funding for future projects unless there are compelling reasons to proceed.

CG should be held accountable for the overspend on the project.

DH should be held accountable for the overspend on the project.

Show Suggested Answer

Suggested Answer: B, E, F

by Ilene at Apr 14, 2024, 04:44 PM

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Selene

2 months ago

Wait, did they try turning the project off and on again? That usually fixes everything in the IT world!

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Raelene

12 days ago

C) G should be held accountable for the overspend on the project.

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Madonna

25 days ago

B) The production department should not be granted funding for future projects unless there are compelling reasons to proceed.

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Jaclyn

1 months ago

A) YGH should consider introducing more detailed checking of the assumptions underlying the costs of future projects.

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Rasheeda

2 months ago

This is like a game of 'hot potato' - nobody wants to take the blame! I'll go with A, but I'm not sure any of these options are completely satisfactory.

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Donette

1 months ago

C) G should be held accountable for the overspend on the project.

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Fernanda

1 months ago

B) The production department should not be granted funding for future projects unless there are compelling reasons to proceed.

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Amie

1 months ago

A) YGH should consider introducing more detailed checking of the assumptions underlying the costs of future projects.

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Tonja

2 months ago

Hold on, wait a minute. Didn't the question say H was the one in charge when the project was proposed? Shouldn't he be the one held accountable? I'm going with D.

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Marilynn

2 months ago

I'm not sure I agree with that. If the true costs were hidden, then the production department is to blame. I'd go with C - G should be held responsible.

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Asha

8 days ago

That's a good point. So maybe both G and H should share the responsibility.

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Tess

10 days ago

True, but G was the one managing the department when the project was actually implemented.

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Queenie

26 days ago

But H was the one managing the department when the project was proposed.

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Annice

2 months ago

I think G should definitely be held accountable for the overspend.

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Cory

2 months ago

Hmm, this is a tricky one. I think the answer is A - YGH should really tighten up their cost estimation process. Sounds like they got burned on this one!

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