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CIMAPRA17-BA2-1 Exam - Topic 4 Question 109 Discussion

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.)
B) Selling price and C) Cost of goods sold
A) Fixed costs

CIMAPRA17-BA2-1 Exam - Topic 4 Question 109 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 109
Topic #: 4
[All CIMAPRA17-BA2-1 Questions]

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.)

Show Suggested Answer Hide Answer
Suggested Answer: B, C

Contribute your Thoughts:

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You definitely don't deduct selling price!
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Otis
5 days ago
From what I studied, I believe we shouldn't deduct the selling price at all, but I need to double-check my notes on fixed costs.
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Shelba
10 days ago
I’m a bit confused about cost of goods sold. I feel like we might need to deduct that, but I can't recall clearly.
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Ligia
15 days ago
I remember a practice question where we had to identify costs that shouldn't be deducted, and I think selling price was one of them.
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Catherin
2 months ago
I think we definitely need to deduct fixed costs to find the profit, but I'm not sure about the selling price.
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