CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 88 Discussion

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

Question #: 88
Topic #: 1

[All CIMAPRA17-BA2-1 Questions]

Within the relevant range, a variable cost is a cost which:

Acannot be forecast with any degree of accuracy because of its variability.

Bvaries in total in proportion to the level of activity.

Cvaries per unit in proportion to the level of activity.

Dvaries in total in proportion to the level of inflation.

Show Suggested Answer

Suggested Answer: B

by Casie at Jan 14, 2025, 09:07 AM

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Ronald

3 months ago

Wait, are we talking about variable costs or variable speed blenders? I'm a little confused over here...

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Florinda

2 months ago

D) varies in total in proportion to the level of inflation.

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Gertude

2 months ago

C) varies per unit in proportion to the level of activity.

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Jerry

2 months ago

B) varies in total in proportion to the level of activity.

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Mitsue

3 months ago

A) cannot be forecast with any degree of accuracy because of its variability.

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Shaunna

3 months ago

Option B is the way to go. Keeps it simple - variable costs move up and down with the activity level. No need to overcomplicate it.

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Catherin

3 months ago

Haha, I'm gonna have to go with 'C' on this one. Varies per unit? That's just common sense, right? *wink*

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Aliza

2 months ago

User 3: Agreed, 'C' seems like the most logical choice.

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Sharen

2 months ago

User 2: Yeah, it makes sense that variable cost varies per unit.

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Adria

2 months ago

User 3: Yeah, I agree with Adria. 'C' makes sense.

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Kanisha

2 months ago

User 1: I think 'C' is the correct answer.

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Rosalind

3 months ago

User 2: Nah, I'm pretty sure it's 'C'.

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Antonette

3 months ago

User 1: I think it's 'B'.

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In

4 months ago

I agree with Jaime. Variable costs are directly tied to the volume of production or sales, not external factors like inflation.

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Jerry

3 months ago

User 4: So, variable costs are directly related to production or sales volume, not inflation.

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Micaela

3 months ago

User 3: Yes, variable costs per unit change as the level of activity changes.

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Wava

3 months ago

User 2: I agree, variable costs change based on the level of activity.

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Justa

3 months ago

User 1: I think the answer is B) varies in total in proportion to the level of activity.

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Tomoko

4 months ago

I'm not sure, but I think it's C. Variable costs per unit change with activity levels.

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Jonell

4 months ago

I agree with Tegan, because variable costs change in total as activity changes.

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Jaime

4 months ago

Option B seems the most accurate to me. Variable costs definitely vary with the level of activity, not just inflation.

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Lenny

3 months ago

Definitely, it's crucial to understand how variable costs will impact the overall cost structure of a business.

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Charlie

3 months ago

I think option B is the best choice here. It makes sense that variable costs would vary in total in proportion to the level of activity.

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Catalina

3 months ago

Yes, that's correct. It's important to consider how variable costs will fluctuate with production levels.

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Ria

3 months ago

I agree, variable costs do change based on the level of activity.

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Tegan

5 months ago

I think the answer is B.

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