CIMA Exam CIMAPRO19-P02-1 Topic 3 Question 86 Discussion

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

Question #: 86
Topic #: 3

A supermarket group has experienced operational problems during recent years, including a shortage of warehousing space due to increasing turnover and poor inventory management. The product portfolio has expanded considerably. Although this has led to increased sales volume, marketing and logistics costs have increased disproportionately. Non product-specific costs have also increased significantly.

Management is now considering using Direct Product Profitability (DPP).

Which of the following statements are valid in respect of the possible implementation of DPP within the supermarket group?

Select ALL that apply.

ADPP should result in improved management of storage space.

BDPP should result in improved supplier relationships.

CDPP should result in improved pricing decisions.

DDPP requires non product-specific costs to be apportioned rather than allocated.

EDPP provides summary information on the profitability of each customer group.

Show Suggested Answer

Suggested Answer: A, C, D

by Tanja at Apr 26, 2024, 09:23 AM

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Ressie

2 months ago

DPP sounds like a tasty way to improve their supermarket's performance. I'll have a double scoop of Option C and a side of Option A, please!

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Velda

1 months ago

C: DPP sounds like a great tool for the supermarket group.

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Son

1 months ago

B: DPP should result in improved pricing decisions.

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Shaun

1 months ago

A: DPP should result in improved management of storage space.

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Armanda

2 months ago

Haha, Option D is a classic accounting question. 'Apportioned' or 'allocated' - the age-old debate in cost accounting!

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Sina

2 months ago

I'm not so sure about Option E. Wouldn't DPP focus more on product profitability rather than customer groups? That's a bit of a stretch in my opinion.

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Kimbery

16 days ago

Nilsa: Yeah, I think DPP is more about product profitability rather than customer groups.

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Gertude

27 days ago

User 3: I'm not sure about Option E. DPP focusing on customer groups seems unlikely.

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Dino

1 months ago

I agree with you. DPP is more focused on product profitability rather than customer groups.

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Nilsa

1 months ago

User 2: I agree. Option A makes sense for improving operational efficiency.

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Lavonna

2 months ago

User 1: I think Option A is valid. DPP should help with managing storage space.

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Rolf

2 months ago

I think Option E makes sense. DPP can provide information on profitability of different customer groups.

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Idella

2 months ago

Improved supplier relationships (Option B) is also a potential benefit of DPP. It could help them negotiate better deals and optimize their supply chain.

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Elinore

1 months ago

DPP provides summary information on the profitability of each customer group.

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Rebbeca

1 months ago

DPP should result in improved pricing decisions.

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Daryl

2 months ago

DPP should result in improved supplier relationships.

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Luisa

2 months ago

DPP should result in improved management of storage space.

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Kerrie

2 months ago

I believe C) DPP should result in improved pricing decisions is also valid. It can help optimize pricing strategies based on profitability.

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Alex

2 months ago

DPP seems like a great solution to their warehousing and inventory woes. Choice A is definitely valid, as it should help them manage their storage space more efficiently.

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Celia

2 months ago

I agree with Jin. Better storage management can help with the warehousing space shortage issue.

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Jin

3 months ago

I think A) DPP should result in improved management of storage space.

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