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CIMAPRA17-BA2-1 Exam - 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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Matilda
6 months ago
I thought staff hours would be more relevant, but A does make sense.
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Donette
6 months ago
Wait, are we really considering 10% of machine value? That seems off.
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Isaac
6 months ago
400% of wages? That sounds way too high!
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Polly
7 months ago
Definitely agree with option A, seems the most logical!
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Mireya
7 months ago
I think the overhead absorption rate should be based on machine hours.
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Arletta
7 months ago
I’m torn between A and D. I remember we talked about staff hours being important, but machine hours seemed to be the focus in our last review.
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My
7 months ago
I feel like using a percentage of machine value could be relevant, but I can't recall if that's the most common approach for this type of cost.
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Yasuko
8 months ago
I think we had a similar practice question about calculating overhead based on machine hours. I might lean towards option A.
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Mila
8 months ago
I remember we discussed overhead absorption rates in class, but I'm not sure which one fits best here.
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Dorthy
8 months ago
The question mentions that the indirect costs are mainly equipment-related, so I'm thinking the most appropriate rate would be based on machine hours or machine value. I'll need to do the calculations to see which one makes the most sense.
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Jospeh
8 months ago
Ugh, I hate these types of questions. There's always some trick to it. I'll just have to guess and hope for the best.
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Hillary
8 months ago
Hmm, not sure about this one. The options seem a bit random. I'll have to read through the question again and try to figure out the logic behind the different choices.
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Melvin
8 months ago
This looks like a classic cost allocation question. I'll need to carefully review the budget details and think about the most appropriate cost driver to use.
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Frank
8 months ago
Okay, I think I've got this. The key is to identify the main indirect costs and then choose the most relevant cost driver to allocate those costs. Let me work through this step-by-step.
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Loren
1 year 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
1 year 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
11 months ago
I'm leaning towards A) 6 per machine hour, but I'm not 100% confident.
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Zena
12 months ago
I think it could also be C) 400% of radiologists' wages, but I'm not entirely sure.
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Jesusa
12 months ago
I agree, B) 10% of machine value seems like the most logical choice.
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Stefanie
1 year 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
12 months ago
High overhead rates can really add up!
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Yvonne
12 months ago
I agree, I'm going with C) 400% of radiologists' wages.
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Kris
1 year ago
I think A) 6 per machine hour is too specific.
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Edda
1 year 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
12 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
1 year ago
I agree, let's double-check the numbers before making a final decision.
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Ora
1 year 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
1 year 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
1 year 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
1 year 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
1 year ago
I see your point, but I still believe B) 10% of machine value is the best choice here.
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Rosio
1 year 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
1 year ago
I agree, B) 10% of machine value makes the most sense given the details provided.
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Pansy
1 year 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
1 year ago
I think the most appropriate overhead absorption rate is 10% of machine value.
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