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CIMAPRA17-BA2-1 Exam - Topic 1 Question 13 Discussion

Assume that a unit of output is the cost object. Which of the following statements is valid?
C) The salaries of supervisors who oversee the manufacture of several different products are an example of a direct labour cost.
A) Royalties paid on per unit basis are an example of an indirect expense.
B) Materials consumed in the maintenance of machinery used to manufacture several different products are an example of a direct material cost.
D) Rent paid for a factory in which several different products are produced is an example of an indirect expense.

CIMAPRA17-BA2-1 Exam - Topic 1 Question 13 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 13
Topic #: 1
[All CIMAPRA17-BA2-1 Questions]

Assume that a unit of output is the cost object. Which of the following statements is valid?

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Suggested Answer: C

https://www.acowtancy.com/textbook/acca-ma/a3-cost-classification/cost-objects-cost-units-and-cost-centres-/notes

by Joanna at May 04, 2022, 08:43 AM

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Quentin
9 months ago
B is tricky, but I think it’s direct if it’s for specific products.
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Dudley
9 months ago
I thought supervisors' salaries were considered indirect costs?
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Emogene
9 months ago
Wait, how can materials for maintenance be direct? Seems off.
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Maurine
9 months ago
Totally agree with D, that's indirect for sure!
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Gaynell
9 months ago
A is definitely an indirect expense.
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Armanda
10 months ago
Hmm, I'm a bit confused by the conditional statements in these code segments. I'll need to walk through the logic step-by-step to understand what's happening.
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Reyes
10 months ago
I'm a bit confused by the wording of the question. Are we looking for an alternative to assigning NULL values, or an alternative to overwriting NULL values?
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