Ican 2026 Performance Management Question 5

Practice mixed question 5 from the 2026 Ican Performance Management examination.

Ican 2026 Performance Management Mixed

Question 5 ICAN • 2026 • PERFORMANCE MANAGEMENT • mixed

Case Stimulus

Acop Nigeria Limited manufactures four products which are initially processed together at Process 1 before further processing using different processes. The four products are Pat, Pet, Pan and Pea. Pat is further processed in Process 2, Pet in Process 3, Pan in Process 4 and Pea in Process 5. Process 1 has a 10% loss whereas no process loss is expected from Processes 2 to 5. Process 1 scraps are sold at ₦50 per kg. Process 1 total costs are apportioned to the products based on the quantities of each product at spilt off point. Production overhead is absorbed as a percentage of direct wages.

Requirements

( a )

Evaluate and advise an alternative production strategy which would optimise the company’s profit for the month.

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About This Question

This is Ican 2026 Performance Management Question 5. It is one of the mixed questions from the 2026 Ican Performance Management examination.

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