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

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 54
Topic #: 1

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.

Show Suggested Answer

Suggested Answer: C, D

by Valentine at Jun 27, 2022, 07:29 AM

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Desire

4 months ago

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

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Bettina

4 months ago

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

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Elvera

4 months ago

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

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Mirta

4 months ago

I think option D is also valid, right?

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Cordell

4 months ago

Contract A in option A definitely uses cost of sales.

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Domonique

5 months 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.

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Casandra

5 months 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.

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Stanford

5 months 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.

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Walton

5 months 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.

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Lisandra

5 months 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.

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Katy

5 months 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.

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Sherell

5 months 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.

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Verlene

5 months 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.

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