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

Within the relevant range, a variable cost is a cost which:
B) varies in total in proportion to the level of activity.
A) cannot be forecast with any degree of accuracy because of its variability.
C) varies per unit in proportion to the level of activity.
D) varies in total in proportion to the level of inflation.

CIMAPRA17-BA2-1 Exam - 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:

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Suggested Answer: B

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

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Jacki
8 months ago
D is totally off; inflation isn’t what variable costs are about.
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Asha
8 months ago
Wait, can variable costs really be that predictable?
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Tanesha
8 months ago
C is also a possibility, but I think it’s more about total costs.
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Elin
8 months ago
I agree, B makes the most sense here!
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Susana
9 months ago
Definitely B, it’s all about total costs changing with activity levels.
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Erasmo
9 months ago
I definitely recall that variable costs are linked to activity levels, but I’m not sure if it’s about total costs or per unit costs.
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Tammara
9 months ago
I’m a bit confused about whether variable costs vary per unit or in total. I think I might have seen something similar in a past exam.
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Earnestine
9 months ago
I remember practicing a question that mentioned how variable costs change with production levels, so I feel like option B might be correct.
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Rutha
9 months ago
I think variable costs are supposed to vary in total with activity levels, but I'm not completely sure if that's the right way to put it.
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Ilda
9 months ago
This seems like a good opportunity to apply my knowledge of cost behavior. I'll think through each option and select the one that best fits the definition of a variable cost.
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Kasandra
9 months ago
I'm a little confused by the wording of the question. I'll need to read through the answer choices carefully to make sure I understand what they're asking.
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Devon
9 months ago
Okay, I think I've got this. The key is to identify which answer choice best describes how variable costs change with the level of activity.
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Ivette
9 months ago
Hmm, I'm a bit unsure about this one. I need to make sure I understand the concept of variable costs and how they relate to the level of activity.
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Lorriane
10 months ago
This looks like a straightforward question on variable costs. I'll focus on understanding the key differences between the answer choices.
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Ronald
1 year ago
Wait, are we talking about variable costs or variable speed blenders? I'm a little confused over here...
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Florinda
1 year ago
D) varies in total in proportion to the level of inflation.
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Gertude
1 year ago
C) varies per unit in proportion to the level of activity.
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Jerry
1 year ago
B) varies in total in proportion to the level of activity.
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Mitsue
1 year ago
A) cannot be forecast with any degree of accuracy because of its variability.
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Shaunna
1 year 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
1 year 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
1 year ago
User 3: Agreed, 'C' seems like the most logical choice.
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Sharen
1 year ago
User 2: Yeah, it makes sense that variable cost varies per unit.
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Adria
1 year ago
User 3: Yeah, I agree with Adria. 'C' makes sense.
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Kanisha
1 year ago
User 1: I think 'C' is the correct answer.
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Rosalind
1 year ago
User 2: Nah, I'm pretty sure it's 'C'.
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Antonette
1 year ago
User 1: I think it's 'B'.
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In
1 year 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
1 year ago
User 4: So, variable costs are directly related to production or sales volume, not inflation.
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Micaela
1 year ago
User 3: Yes, variable costs per unit change as the level of activity changes.
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Wava
1 year ago
User 2: I agree, variable costs change based on the level of activity.
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Justa
1 year ago
User 1: I think the answer is B) varies in total in proportion to the level of activity.
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Tomoko
1 year ago
I'm not sure, but I think it's C. Variable costs per unit change with activity levels.
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Jonell
1 year ago
I agree with Tegan, because variable costs change in total as activity changes.
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Jaime
1 year 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
1 year ago
Definitely, it's crucial to understand how variable costs will impact the overall cost structure of a business.
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Charlie
1 year 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
1 year ago
Yes, that's correct. It's important to consider how variable costs will fluctuate with production levels.
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Ria
1 year ago
I agree, variable costs do change based on the level of activity.
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Tegan
1 year ago
I think the answer is B.
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