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CIMAPRA17-BA2-1 Exam - Topic 1 Question 48 Discussion

A service company provides accountancy training courses. Which THREE of the following would be classified as variable costs of the company?
B) Office rental
A) Hire of conference rooms
C) Lecturers' fees (Lecturers are paid a flat rate per day)
D) Advertising (The company runs specific adverts for each course)
E) Depreciation of office machinery
F) Course manager's salary

CIMAPRA17-BA2-1 Exam - Topic 1 Question 48 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 48
Topic #: 1
[All CIMAPRA17-BA2-1 Questions]

A service company provides accountancy training courses. Which THREE of the following would be classified as variable costs of the company?

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Suggested Answer: B

by Denise at Feb 08, 2023, 09:04 AM

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Laurel
10 months ago
I agree, D is the only clear variable cost here!
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Mee
10 months ago
Office rental is a fixed cost, right?
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Emogene
10 months ago
Wait, are conference room hires really variable?
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Taryn
11 months ago
Definitely D for advertising!
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Lang
11 months ago
Lecturers' fees are fixed, not variable.
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Starr
11 months ago
I feel like office rental is definitely a fixed cost, but I'm confused about the course manager's salary—does that count as variable?
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Lashaun
11 months ago
I practiced a similar question where we had to identify variable costs, and I think the hire of conference rooms could be variable if it depends on the number of courses.
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Galen
11 months ago
I'm not entirely sure, but I think the lecturers' fees are fixed since they get paid a flat rate, right?
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Elbert
11 months ago
I remember variable costs are those that change with the level of output, so I think advertising might be one of them since it varies by course.
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Garry
11 months ago
Okay, veracity is about truthfulness, so the answer has to be B. That's the only option that directly mentions honesty and lack of deception.
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Susana
11 months ago
I'm a bit unsure about this one. I know SYSKEY is related to Windows security, but I'm not familiar with the specifics of the number of bits used for encryption.
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Vivan
11 months ago
This is a good one. I remember learning about the Activity Settings page and the different configuration options it provides. I think I can narrow down the correct answer here.
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Myra
11 months ago
I'm a bit stumped on this one. The information provided seems straightforward, but I'll need to carefully analyze each option to determine the root cause.
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Letha
1 year ago
This is a tricky one, but I'm going with C, D, and F. The lecturers' fees and advertising costs make sense as variable costs, and the course manager's salary is a fixed cost. Easy peasy, lemon squeezy!
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Gracia
1 year ago
Exactly! Variable costs change with the level of activity, while fixed costs remain constant. It's important to distinguish between the two for accurate cost analysis.
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Kenia
1 year ago
I agree with you. Those are the variable costs because they vary with the level of activity. The hire of conference rooms and office rental are fixed costs.
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Ariel
1 year ago
I think C, D, and F are the variable costs. The lecturers' fees and advertising costs can change based on the number of courses, and the course manager's salary is fixed.
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Carin
1 year ago
Haha, I bet the exam writer is trying to trick us with this one. But I'm pretty confident the answer is C, D, and F. Gotta love those variable costs!
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Mendy
1 year ago
It's important to understand the difference for financial analysis purposes.
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Daniel
1 year ago
Exactly, that's why they're considered variable costs in accounting.
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Art
1 year ago
Yeah, those costs change based on the level of activity, unlike fixed costs.
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Tawna
1 year ago
I think you're right, C, D, and F are definitely variable costs.
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Cristina
1 year ago
Good thing we know our accounting terms!
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Dulce
1 year ago
Exactly, that's what makes them variable costs.
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Nikita
1 year ago
Yeah, those costs change based on the level of activity in the company.
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Sunny
1 year ago
I think you're right, C, D, and F are definitely variable costs.
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Lindsey
1 year ago
Ah, I see. The correct answer must be C, D, and F. The other options like office rental and depreciation are clearly fixed costs.
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Jaime
1 year ago
Yes, I agree. Those are the costs that vary with the level of activity in the company.
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Stephaine
1 year ago
I think you're right. Lecturers' fees, advertising, and course manager's salary are all variable costs.
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Roosevelt
1 year ago
Hmm, I think C, D, and F are the variable costs here. The lecturers' fees and advertising costs vary based on the number of courses, while the course manager's salary is a fixed cost.
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Shannon
1 year ago
I'm not sure about F. Isn't the course manager's salary a fixed cost since it doesn't change based on the number of courses?
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Virgie
1 year ago
I agree with Ricki. A, D, and F are directly related to the level of activity in the company.
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Ricki
1 year ago
I think A, D, and F are variable costs because they change with the number of courses offered.
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