Discuss CIMA CIMAPRA19-F02-1 Exam Topic 1 Question 54

Which of the following examples of contracts will use cost of sales as the balancing figure when calculating profit or loss?

Select ALL that apply.

AContract A has a total value of50m, costs to date of42m and expected costs to completion of15m. The project's % stage of completion is 74% using the cost method.

BContract A has a total value of55m, costs to date of33m and expected costs to completion of18m.

CContract A has a total value of75m, costs to date of61m and expected costs to completion of20m. The contracts % stage of completion was calculated by dividing its value to date of45m by75m.

DContract A has a total value of60m, costs to date of42m and expected costs to completion of15m. The project's % stage of completion is 80% using the value method.

EContract A has a total value of85m, costs to date of69m and expected costs to completion of22m. The contracts % stage of completion was calculated by dividing its costs incurred to date of69m by 75m.

Suggested Answer: C, D

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13 comments · newest first

Desire 12 months ago

Not sure about option B, seems like it doesn't add up.

Bettina 12 months ago

Option C is tricky, but I agree it fits the criteria.

Elvera 1 year ago

Wait, how does option E even work? Sounds off.

Mirta 1 year ago

I think option D is also valid, right?

Cordell 1 year ago

Contract A in option A definitely uses cost of sales.

Domonique 1 year ago

I feel like A and D are definitely related to cost of sales, but I’m confused about E since it mentions costs but also has a different denominator.

Casandra 1 year ago

I'm not entirely sure, but I think the value method is different, so maybe D is out. I need to double-check how the balancing figure works.

Stanford 1 year ago

I remember that the cost method uses costs incurred to determine the stage of completion, so I think A and E might be correct.

Walton 1 year ago

I practiced a similar question, and I think B and C might not use cost of sales since they seem to focus on total value instead.

Lisandra 1 year ago

I'm a bit confused by the phrasing of this question. The options don't seem to clearly align with the context provided. I'll need to re-read it a few times and try to connect the dots before making a guess.

Katy 1 year ago

This seems like a straightforward question about improving user access to frequently used records. I'll carefully review the options and think through the pros and cons of each.

Sherell 1 year ago

This seems like a straightforward risk management question. I'll focus on understanding the key terms and how they relate to the definition provided.

Verlene 1 year ago

I'm feeling confident about this one. The customer becoming overly dependent on the service integration partner is clearly the biggest disadvantage described in the options.

CIMAPRA19-F02-1 Exam - Topic 1 Question 54 Discussion