CIMAPRA17-BA2-1 Exam - Topic 1 Question 68 Discussion

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

Question #: 68
Topic #: 1

When compiling profit statement using a marginal costing system we must calculate the contribution. Once we have the contribution, we must deduct a specific amount to calculate the profit. Which of these values should we NOT deduct? (Select ALL that apply.)

AFixed costs

BSelling price

CCost of goods sold

Show Suggested Answer

Suggested Answer: C

by Rosendo at Apr 21, 2024, 01:37 AM

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Talia

4 months ago

I’m surprised fixed costs don’t get deducted, that seems odd!

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Teddy

5 months ago

Selling price is definitely not deducted, it's the revenue!

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Reed

5 months ago

Wait, are we sure about that? I thought selling price was also excluded.

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Jamie

5 months ago

Totally agree, fixed costs are not part of the contribution calculation!

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Carylon

5 months ago

Fixed costs shouldn't be deducted in marginal costing.

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Johnetta

6 months ago

I feel like cost of goods sold is something we do deduct, but I can't recall if it applies here.

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Antonio

6 months ago

From what I practiced, we only deduct variable costs from contribution, so fixed costs should be safe to include.

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Trinidad

6 months ago

I think we definitely don't deduct the selling price, but I might be mixing it up with absorption costing practices.

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Dana

6 months ago

I remember that fixed costs are not deducted from contribution in marginal costing, but I'm not sure about the selling price.

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Alfred

6 months ago

This is a tricky one, but I think the key is to focus on the difference between fixed and variable costs. The fixed costs are the ones we don't want to deduct, since they're already accounted for in the contribution.

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Youlanda

6 months ago

Okay, I think I've got this. We shouldn't deduct the selling price or the cost of goods sold, since those are already factored into the contribution. The only thing we should deduct is the fixed costs to get the final profit.

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Miesha

6 months ago

Hmm, I'm a bit confused on this one. I know we need to calculate the contribution, but I'm not sure which values we should be deducting from that. I'll have to think this through carefully.

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Jarvis

6 months ago

This looks like a straightforward question on marginal costing. I think the key is to remember that we need to deduct the variable costs from the selling price to get the contribution, and then we need to deduct the fixed costs to get the profit.

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Franchesca

6 months ago

I'm a bit confused, there are a few options I'm not familiar with. I'll have to carefully read through each one to make sure I select the right three.

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Corinne

6 months ago

Hmm, I'm a bit unsure about the difference between a risk audit and a risk assessment. I'll need to think this through carefully.

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Louis

6 months ago

Hmm, I'm not too sure about this one. I'll have to think it through carefully. Maybe I should review the course materials on IT implementation methods again.

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Afton

6 months ago

I'm not totally sure, but I remember something about Threat Intelligence policies from practice questions. Could they be relevant here for downloading data?

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Doretha

7 months ago

I don't think it's the DHCP Monitor Service since that seemed unrelated in our studies. My gut says it's the XCP service, though.

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Deonna

11 months ago

Aha, I think I've got it! We definitely shouldn't deduct the selling price, that would just leave us with a negative number. Time to put on my thinking cap for the other options.

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