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

4 months ago

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

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Angelica

4 months ago

Totally agree, food and beverages fluctuate with guest numbers!

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Candida

4 months ago

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

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Delisa

4 months ago

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

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Vanda

5 months ago

Food and beverages are definitely variable costs.

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Hannah

5 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

5 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

5 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

9 months 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

8 months ago

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

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Trevor

8 months ago

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

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Shaunna

8 months ago

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

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Kate

8 months ago

F) Outside laundry service

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Tess

8 months ago

E) Beverages

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Major

8 months ago

D) Restaurant Manager's salary

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Helene

8 months ago

C) Depreciation on gym equipment

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Arthur

8 months ago

B) Food

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Felton

9 months ago

A) Advertising

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Diane

9 months 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

9 months 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

10 months 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

8 months ago

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

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Celeste

8 months ago

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

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My

9 months ago

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

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Mendy

10 months 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

9 months ago

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

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Cristal

10 months ago

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

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Ira

11 months ago

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

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Carmela

11 months ago

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

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Hildred

11 months ago

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

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