CIMA Exam CIMAPRA17-BA2-1 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

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA2-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Jenelle

8 days ago

Definitely don't deduct the selling price - that would just be silly! We need that to calculate the contribution in the first place.

upvoted 0 times

...

Delpha

10 days ago

I think we should not deduct selling price either, as it is the revenue generated from sales and should not be subtracted from profit.

upvoted 0 times

...

Blythe

13 days ago

I agree with Tyra, fixed costs should not be deducted because they are already accounted for in the contribution.

upvoted 0 times

...

Tyra

14 days ago

We should not deduct fixed costs when calculating profit.

upvoted 0 times

...