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CIMAPRA17-BA3-1 Exam - Topic 1 Question 4 Discussion

Which of the following are examples of indirect costs for a chocolate manufacturing business?
A) Factory rent and B) Factory insurance and C) Factory supervisor wages
D) Purchase of milk
E) Purchase of cocoa

CIMAPRA17-BA3-1 Exam - Topic 1 Question 4 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam
Question #: 4
Topic #: 1
[All CIMAPRA17-BA3-1 Questions]

Which of the following are examples of indirect costs for a chocolate manufacturing business?

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Suggested Answer: A, B, C

by Adell at May 07, 2022, 12:01 AM

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France
9 months ago
Yup, all those costs are indirect except for the milk and cocoa!
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Ethan
9 months ago
Wait, are we sure about the milk purchase being indirect?
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Brandon
9 months ago
Factory insurance counts as an indirect cost for sure!
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Florinda
9 months ago
I think factory supervisor wages are direct costs, right?
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Floyd
9 months ago
Factory rent is definitely an indirect cost.
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Francine
10 months ago
Hmm, I'm a bit unsure about this one. I know datalink has something to do with the network layers, but I can't quite remember the exact definition. I'll have to think this through carefully.
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Dick
10 months ago
This question seems straightforward, but I want to make sure I understand the key differences between traditional budgeting and activity-based budgeting before answering.
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