MENU
The following costs are incurred by a company which owns a five star hotel. Which THREE of the items would normally be classified as variable costs?
Suggested Answer: D
Get Premium CIMAPRA17-BA2-1 Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
30 comments · newest first
JU
Junita
1 year ago
Outside laundry service feels more fixed to me, not variable.
AN
Angelica
1 year ago
Totally agree, food and beverages fluctuate with guest numbers!
CA
Candida
1 year ago
Wait, how is depreciation not a variable cost? Seems odd.
DE
Delisa
1 year ago
I think advertising can also be variable, depending on the campaign.
VA
Vanda
1 year ago
Food and beverages are definitely variable costs.
HA
Hannah
1 year ago
I'm a bit confused about the different options here. I'll need to research each one to understand the pros and cons before deciding.
WA
Walton
1 year ago
Combining the SELECT statements into a single SOQL statement could be a good approach to optimize the query.
TA
Tamra
1 year ago
I think I remember the concept of service façades being discussed in class, but I'm not entirely sure about the negative coupling part.
SO
Sonia
1 year ago
Wait, are we sure the gym equipment is a variable cost? Sounds like something that should be depreciated. I'll stick with B, E, and F.
BU
Buddy
1 year ago
Definitely, the gym equipment depreciation and manager's salary would likely stay the same regardless of business volume.
TR
Trevor
1 year ago
Yeah, I agree. Those are the costs that would likely change based on the level of business activity.
SH
Shaunna
1 year ago
I agree, I think B, E, and F are the variable costs.
KA
Kate
1 year ago
F) Outside laundry service
TE
Tess
1 year ago
E) Beverages
MA
Major
1 year ago
D) Restaurant Manager's salary
HE
Helene
1 year ago
C) Depreciation on gym equipment
AR
Arthur
1 year ago
B) Food
FE
Felton
1 year ago
A) Advertising
DI
Diane
1 year ago
Alright, let's see. I think food, beverages, and outside laundry service are the most likely variable costs here. Gotta keep those towels clean, am I right?
EL
Elbert
1 year ago
Haha, the restaurant manager's salary as a variable cost? That's a good one! I'm going to go with B, E, and F.
HE
Helga
1 year ago
Hmm, this is tricky. I'm not sure about depreciation on gym equipment - is that really a variable cost? I'd go with B, E, and F.
DE
Desire
1 year ago
Yeah, those are the costs that change based on the level of activity in the hotel.
CE
Celeste
1 year ago
You're right, I think Food, Beverages, and Outside laundry service are the variable costs.
MY
My
1 year ago
Depreciation on gym equipment is actually a fixed cost, so that one is out.
ME
Mendy
2 years ago
I think food, beverages, and outside laundry service are the variable costs. The others seem more like fixed costs to me.
TA
Tayna
1 year ago
Depreciation on gym equipment, advertising, and restaurant manager's salary are considered fixed costs.
CR
Cristal
2 years ago
Food, beverages, and outside laundry service are indeed variable costs.
IR
Ira
2 years ago
I'm not sure about outside laundry service. I think advertising, food, and beverages are variable costs.
CA
Carmela
2 years ago
I agree with Hildred. Those costs can change based on the level of business activity.
HI
Hildred
2 years ago
I think food, beverages, and outside laundry service are variable costs.