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

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.
C) Contract 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. and D) Contract 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.
A) Contract 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.
B) Contract A has a total value of55m, costs to date of33m and expected costs to completion of18m.
E) Contract 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.

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

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 54
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

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.

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Suggested Answer: C, D

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

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Desire
8 months ago
Not sure about option B, seems like it doesn't add up.
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Bettina
9 months ago
Option C is tricky, but I agree it fits the criteria.
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Elvera
9 months ago
Wait, how does option E even work? Sounds off.
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Mirta
9 months ago
I think option D is also valid, right?
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Cordell
9 months ago
Contract A in option A definitely uses cost of sales.
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Domonique
9 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
9 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
9 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
10 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
10 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
10 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
10 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
10 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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