CIMA Exam CIMAPRO19-P02-1 Topic 3 Question 85 Discussion

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

Question #: 85
Topic #: 3

Three years ago the large number of faulty products being returned by its customers resulted in a company adopting total quality management (TQM). The company has increased expenditure on staff training and product inspections. This has resulted in a reduction in the number of faulty products returned.

Which of the following statements is correct?

ASpending more on conformance costs has resulted in a reduction in internal failure costs.

BSpending more on conformance costs has resulted in a reduction in external failure costs.

CSpending more on non-conformance costs has resulted in a reduction in conformance costs.

DSpending more on prevention costs has resulted in a reduction in appraisal costs.

Show Suggested Answer

Suggested Answer: A

by Hollis at Apr 21, 2024, 03:59 PM

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Son

1 months ago

This question is as clear as mud. I think the company should just start selling the faulty products as premium 'surprise' editions. Guaranteed to keep customers on their toes!

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Judy

10 days ago

C) Spending more on non-conformance costs has resulted in a reduction in conformance costs.

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Judy

11 days ago

B) Spending more on conformance costs has resulted in a reduction in external failure costs.

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Judy

18 days ago

A) Spending more on conformance costs has resulted in a reduction in internal failure costs.

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Willetta

1 months ago

I'm with the majority on this one. Option B is the way to go. Conformance costs FTW!

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Major

15 days ago

I agree, option B is the correct statement. Conformance costs have indeed resulted in a reduction in external failure costs.

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Yong

1 months ago

Haha, the company should have just thrown the faulty products out the window and called it a day! But seriously, option B seems like the right answer here.

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Hana

2 months ago

This is a classic quality management question. Option B makes the most sense to me. Conformance costs lead to a reduction in external failure costs.

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Herman

12 days ago

Exactly, it's all about investing in quality to avoid costly failures in the long run.

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Blair

21 days ago

That makes sense. Conformance costs are related to preventing defects before they occur, which would ultimately reduce external failure costs.

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Tegan

1 months ago

B) Spending more on conformance costs has resulted in a reduction in external failure costs.

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Jannette

1 months ago

A) Spending more on conformance costs has resulted in a reduction in internal failure costs.

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Billye

2 months ago

I think option B is correct. Spending more on conformance costs, like staff training and product inspections, has reduced the number of faulty products returned, which are external failure costs.

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Rickie

1 months ago

It's great to see the positive impact of total quality management on the company's product quality.

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Sunshine

1 months ago

Yes, investing in conformance costs has definitely helped reduce external failure costs.

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Tegan

1 months ago

I agree, option B seems to be the correct statement.

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Annamae

2 months ago

I believe option B) is also a possibility. By improving product quality through TQM, the company may have reduced external failure costs as well.

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Daren

2 months ago

I agree with Jannette. By investing in staff training and product inspections, the company is preventing internal failures, which reduces the number of faulty products returned.

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Jannette

3 months ago

I think the correct statement is A) Spending more on conformance costs has resulted in a reduction in internal failure costs.

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