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CIMA Exam CIMAPRA17-BA2-1 Topic 4 Question 82 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 82
Topic #: 4
[All CIMAPRA17-BA2-1 Questions]

Refer to the exhibit.

The indirect costs of a hospital's Radiology Department consists mainly of equipment related costs. Details of the budget for Period 4 are:

The most appropriate overhead absorption rate is:

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Suggested Answer: D

by Janessa at Sep 19, 2024, 12:04 PM

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Loren
3 months ago
Wait, did they say the indirect costs are 'mainly' equipment-related? Sounds like a trap to me! I'm just going to go with the answer that involves the most math - C) 400% of radiologists' wages. Who doesn't love a good ol' overhead calculation?
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Fabiola
3 months ago
This exam is really testing our understanding of hospital finance. I'm feeling confident about B) 10% of machine value. Although, I do wonder if the correct answer is actually 'all of the above' and the exam is just trying to trick us.
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Annice
2 months ago
I'm leaning towards A) 6 per machine hour, but I'm not 100% confident.
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Zena
2 months ago
I think it could also be C) 400% of radiologists' wages, but I'm not entirely sure.
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Jesusa
2 months ago
I agree, B) 10% of machine value seems like the most logical choice.
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Stefanie
4 months ago
A) 6 per machine hour? That's a bit too specific, don't you think? I'm going with C) 400% of radiologists' wages. Gotta love those high overhead rates!
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Kiera
2 months ago
High overhead rates can really add up!
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Yvonne
2 months ago
I agree, I'm going with C) 400% of radiologists' wages.
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Kris
3 months ago
I think A) 6 per machine hour is too specific.
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Edda
4 months ago
Hmm, this is a tricky one. I'm leaning towards D) 3 per staff hour, but I'm not entirely sure. Better double-check the details.
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Roxane
2 months ago
Maybe we should calculate the overhead absorption rate using different methods to see which one is the most appropriate.
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Janna
3 months ago
I agree, let's double-check the numbers before making a final decision.
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Ora
3 months ago
I think D) 3 per staff hour makes sense. Let's review the budget details again to be sure.
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Donte
4 months ago
I agree with Pansy, 6 per machine hour makes more sense as the overhead absorption rate for the Radiology Department.
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Eugene
4 months ago
This question seems straightforward. I think the correct answer is B) 10% of machine value, as the indirect costs are mainly equipment-related.
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Otis
3 months ago
I'm leaning towards D) 3 per staff hour, as it seems like a reasonable way to allocate overhead costs.
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Iluminada
3 months ago
I see your point, but I still believe B) 10% of machine value is the best choice here.
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Rosio
3 months ago
I think A) 6 per machine hour could also be a possible option, since it directly relates to the equipment costs.
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Danilo
3 months ago
I agree, B) 10% of machine value makes the most sense given the details provided.
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Pansy
4 months ago
I disagree, I believe it should be 6 per machine hour because equipment related costs are the main indirect costs.
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Ettie
5 months ago
I think the most appropriate overhead absorption rate is 10% of machine value.
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