CIMA Exam CIMAPRO19-P01-1 Topic 4 Question 70 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 70
Topic #: 4

A company produces three products D, E and F. The statement below shows the selling price and product costs per unit for each product, based on a traditional absorption costing system.

Each of the products is produced using Process A which has a maximum capacity of 2,500 hours per period.

If a traditional contribution approach is used, the ranking of products, in order of priority, for the profit maximizing product mix will be:

AD, E, F

BE, D, F

CF, D, F

DD, E, F

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Suggested Answer: A

References:

by Timothy at May 29, 2023, 02:14 AM

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Lore

1 months ago

Hmm, this seems pretty straightforward. We just need to calculate the contribution margin per hour for each product and rank them accordingly. D has the highest at $20 per hour, E is next at $16 per hour, and F is last at $12 per hour. I'm going with D, E, F, and I'll include a sticky note that says 'No F's were harmed in the making of this exam.'

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Rashida

23 hours ago

That's a clever way to remember the order! D, E, F it is then.

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Adelle

5 days ago

I think you're on the right track. D, E, F seems to be the best option based on the information provided.

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Vincent

7 days ago

I agree, calculating the contribution margin per hour is the key here. D, E, and F in that order sounds right.

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Kenia

2 months ago

Wait, wait, wait. Did you see that? The question says the ranking is C) F, D, F. That's got to be a typo, right? I mean, how can F be both second and third? What kind of messed-up exam is this? I'm just going to go with D, E, F and hope the grader has a sense of humor.

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Cortney

4 days ago

Let's hope the grader understands the confusion.

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Natalie

5 days ago

I agree, D, E, F seems like the logical choice.

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Rosalia

6 days ago

Yeah, that doesn't make sense. I'm going with D, E, F too.

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Daniela

17 days ago

I think it's a typo, F can't be both second and third.

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Laura

18 days ago

Let's hope the examiners realize the error and give credit for choosing D, E, F. It's the best we can do in this situation.

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Rene

20 days ago

I agree, I don't think F can be both second and third. D, E, F seems like the safest option.

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Rosenda

1 months ago

Yeah, that does seem strange. I'm going with D, E, F as well. It seems like the most logical choice.

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Ashlyn

1 months ago

I think there might be a mistake in the question. It doesn't make sense for F to be both second and third.

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Loren

2 months ago

Yeah, I agree. I'm going with D, E, F too. Hopefully, they'll realize the error.

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Miriam

2 months ago

I think there might be a mistake in the question. It doesn't make sense for F to be both second and third.

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Rosalia

2 months ago

Okay, let's see here. We need to rank the products in order of priority for the profit-maximizing product mix using a traditional contribution approach. The key is to look at the contribution margin per unit of the scarce resource, which in this case is the 2,500 hours of Process A capacity. D has the highest contribution margin per hour, so it should be first, then E, and finally F. Definitely going with D, E, F.

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