CIMAPRA17-BA2-1 Exam - Topic 1 Question 34 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 34
Topic #: 1

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?

AAdvertising

BFood

CDepreciation on gym equipment

DRestaurant Manager's salary

EBeverages

FOutside laundry service

Show Suggested Answer

Suggested Answer: D

by Bobbye at May 08, 2022, 07:39 PM

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Junita

9 months ago

Outside laundry service feels more fixed to me, not variable.

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Angelica

9 months ago

Totally agree, food and beverages fluctuate with guest numbers!

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Candida

9 months ago

Wait, how is depreciation not a variable cost? Seems odd.

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Delisa

9 months ago

I think advertising can also be variable, depending on the campaign.

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Vanda

10 months ago

Food and beverages are definitely variable costs.

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Hannah

10 months 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.

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Walton

10 months ago

Combining the SELECT statements into a single SOQL statement could be a good approach to optimize the query.

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Tamra

10 months 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.

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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.

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Buddy

1 year ago

Definitely, the gym equipment depreciation and manager's salary would likely stay the same regardless of business volume.

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Trevor

1 year ago

Yeah, I agree. Those are the costs that would likely change based on the level of business activity.

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Shaunna

1 year ago

I agree, I think B, E, and F are the variable costs.

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Kate

1 year ago

F) Outside laundry service

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Tess

1 year ago

E) Beverages

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Major

1 year ago

D) Restaurant Manager's salary

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Helene

1 year ago

C) Depreciation on gym equipment

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Arthur

1 year ago

B) Food

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Felton

1 year ago

A) Advertising

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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?

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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.

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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.

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Desire

1 year ago

Yeah, those are the costs that change based on the level of activity in the hotel.

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Celeste

1 year ago

You're right, I think Food, Beverages, and Outside laundry service are the variable costs.

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My

1 year ago

Depreciation on gym equipment is actually a fixed cost, so that one is out.

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Mendy

1 year ago

I think food, beverages, and outside laundry service are the variable costs. The others seem more like fixed costs to me.

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Tayna

1 year ago

Depreciation on gym equipment, advertising, and restaurant manager's salary are considered fixed costs.

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Cristal

1 year ago

Food, beverages, and outside laundry service are indeed variable costs.

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Ira

1 year ago

I'm not sure about outside laundry service. I think advertising, food, and beverages are variable costs.

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Carmela

1 year ago

I agree with Hildred. Those costs can change based on the level of business activity.

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Hildred

1 year ago

I think food, beverages, and outside laundry service are variable costs.

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