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?

AFactory rent

BFactory insurance

CFactory supervisor wages

DPurchase of milk

EPurchase of cocoa

Show Suggested Answer

Suggested Answer: A, B, C

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

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France

7 months ago

Yup, all those costs are indirect except for the milk and cocoa!

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Ethan

7 months ago

Wait, are we sure about the milk purchase being indirect?

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Brandon

7 months ago

Factory insurance counts as an indirect cost for sure!

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Florinda

8 months ago

I think factory supervisor wages are direct costs, right?

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Floyd

8 months ago

Factory rent is definitely an indirect cost.

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Francine

8 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

8 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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