CIMAPRA17-BA3-1 Exam - Topic 1 Question 11 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 11
Topic #: 1

ABC manufactures vehicle engines and purchases components from a supplier Each engine requires one component costing $10 each ABC's supplier otters a 5% volume discount which has always been taken, this reduces the cost to $9.50 each. However, ABC has recorded the cost as $10 throughout the accounting system

Once the correct price is recorded, what will be the effect on the factory costs incurred and the gross profit margin (GP%)?

AOption A

BOption B

COption C

DOption D

Show Suggested Answer

Suggested Answer: D

by Roxane at May 05, 2022, 04:19 AM

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Selma

4 months ago

This is a classic accounting mistake, they need to fix that!

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Winfred

4 months ago

Wait, are they really recording it as $10? That seems off.

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Herschel

4 months ago

I think it might affect the gross profit margin too.

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Valentine

4 months ago

Totally agree, that will lower the factory costs!

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Rashida

5 months ago

The component cost is actually $9.50 after the discount.

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Gussie

5 months ago

I'm feeling pretty confident about this one. The highest mitigation with the budget constraint points to option B. Enabling host build reserve and a 4-node vSAN cluster seems like the best approach.

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Claudia

5 months ago

I'm pretty confident the answer is B. The question is about a checkout requirement, so the Checkout Preferences module is the most likely place to find the setting to disable a credit card type.

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