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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Annamae

17 days 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

19 days 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

22 days 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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