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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

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Delsie
10 hours ago
Agreed, selling price is revenue, not a cost.
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Sherill
6 days ago
I think we shouldn't deduct selling price.
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Gabriele
11 days ago
Cost of goods sold is deducted, right?
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Leatha
16 days ago
Agreed, selling price should stay in the calculation!
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Jamie
21 days ago
Wait, are we really not deducting selling price? That seems off.
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Geoffrey
26 days ago
Fixed costs are not deducted in marginal costing.
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Lindsey
1 month ago
You definitely don't deduct selling price!
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Mariko
1 month ago
Totally agree, fixed costs stay out of it!
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Eliseo
1 month ago
Cost of goods sold is a must to deduct, right?
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Ona
2 months ago
Wait, are we really not deducting selling price? That seems off.
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Quentin
2 months ago
Fixed costs are not deducted in marginal costing.
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Kristel
2 months ago
You definitely don't deduct selling price!
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Otis
2 months 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
2 months 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
2 months 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
4 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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